Heineken Reports Organic Growth Amid 6,000 Job Cut Strategy

Heineken NV reported unexpected organic volume growth of 0.9% in the second quarter, with total organic volumes including licensed partners rising 1.9%. The company also saw first-half organic operating profit growth of 6.7%, significantly exceeding analyst expectations of 3.3%. This growth was largely driven by emerging markets, including a 13% jump in the Asia-Pacific region and a 3.5% increase in Africa and the Middle East, which helped offset a 4.1% slump and loss of market share in the Americas.

To combat weak industry demand and higher living costs affecting sales in Europe and the United States, the brewer is executing a two-year restructuring strategy. The company plans to reduce its global workforce by approximately 7%, targeting a total reduction of 5,000 to 6,000 roles. About 3,000 full-time employees were already cut in the first half of the year. These enterprise-wide efficiency measures are expected to generate gross savings between €400 million and €500 million, helping the company offset costs tied to European heatwaves and the Iran war.

Leadership is currently transitioning as Rafael Oliveira, appointed in June, is scheduled to become the first outsider to lead the company as CEO in October. He succeeds Dolf van den Brink, who announced the restructuring cuts in February before resigning in January.