Mega mergers in the beer sector cuts 5,500 jobs – TVI24

Anheuser-Busch InBev will cut about 3% of the total labor force resulting from the purchase of SABMiller. A measure which is intended to maximize savings after the merger of the giant breweries.

The reductions will be implemented gradually, the companies said in a document related to the operation released today. According to Bloomberg, which cites source close to the process, the cut should reach about 5,500 people.

This reduction is part of a plan of annual savings in the house of EUR 1.2 billion that AB InBev intends to reach, after purchase.

the brewers, directed to the mass market market (higher consumption), are trying to cut production and distribution costs, as they lose market share to independent brands of smaller dimension in Europe and North America, reports still to Bloomberg.

last year the very SABMiller doubled its savings target to 930 million in 2020.

AB InBev, the largest brewer in the world, estimates that the job cuts do not include areas such as sales, where you can not make big plans for the integration of the two brands because of regulatory restrictions.

the company also said that the headquarters of SABMiller will be built at its headquarters in Leuven, Belgium, and at the central office in New York.

Anheuser-Busch InBev (abbreviated AB InBev) is a Belgian-Brazilian multinational created in 2004 after the merger of Belgium’s Interbrew with Brazil’s Ambev. It is world leader in the beer market, with a share of 30% and sells brands such as Budweiser, Corona, Stella Artois, Beck’s, Leffe, Hoegarden in Europe; and Skol, Brahma and Antarctica in Brazil.

Since the US SABMiller holds 10% of the world market, and sells brands such as Czech Pilsner Urquell and the Italian Peroni.

Before fusion AB InBev employs 154,000 people worldwide and operating in 140 countries of America, Europe and Asia. Now hopes to strengthen its presence in Africa.

The merger of the brewing giant will focus almost one third of the beer production in the world, surpassing rivals Heineken and Carlsberg.