Heineken Brouwerijen B.V, the majority shareholder of Nigerian Breweries Plc, has announced that it is set to reduce its employee base by 8,000 people, at the end of the first quarter of 2021.
This disclosure was made by the Dutch brewer in a recent media release published on its site today.
The brewer stated that the decision was in line with Heineken’s overall restructuring programme, adding that the cost mitigation actions of the company would consolidate the gains from the investment made by the Dutch Brewer to drive growth.
The management of the company noted that the timelines of the restructuring will vary depending on the specific circumstances of each of the company’s local operations, including a reduction of the personnel costs at the head-office by a run-rate of 20% to be implemented at the end of the first quarter of 2021.
In line with this, the overall restructuring programme will reduce Heineken’s employee base by 8,000 people. The job cut will lead to a total restructuring charge of around €420 million and run-rate direct savings on personnel expenses of €350 million.
However, no statement has been made by the company on similar actions in key subsidiaries, especially the ones in Nigeria. It is essential to understand that the Dutch Company which is also a substantial shareholder of Nigerian Breweries Plc, and maintains an active presence through its brand in Nigeria, revealed that its restructuring programme would extend to its regional offices.
What you should know
- Heineken Breweries B.V is the majority shareholder of Nigerian Breweries, as of December 31st, 2019, the Dutch brewer has an ownership stake of 37.76% in Nigerian Breweries Plc. Heineken in 2020 when the shares of Nigerian breweries were trading at record low prices, acquired additional stakes in the company.
- In January this year, the company increased its indirect stake in Champion Breweries Plc, by 24.3% through an acquisition done by its fully owned subsidiary, Raysun Nigeria Limited.
- The company floats a robust portfolio of impressive brands in Nigeria, it is important to understand that that in 2020, Heineken’s beer sales in Nigeria improved.
- The company noted that its sales volume recovered strongly in the second half of the year delivering low-single-digit growth for the full year, ahead of the market, adding that its premium portfolio grew double-digits, led by Heineken and Tiger.