Anheuser-Busch InBev (A-B) announced a corporate restructuring today that will see the world’s largest beer manufacturer cut just under 2% of its U.S. workforce, an A-B spokesperson confirmed with Brewbound.
The restructuring “will simplify and reduce layers within its organization,” per the spokesperson said. However, the layoffs will not affect A-B’s frontline workers, including brewery and warehouse staff, drivers, and field sales reps, among others.
A-B CEO Brendan Whitworth called the job cuts a “very difficult but necessary decision to eliminate a number of positions across our corporate organization.”
“While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success,” he said. “These corporate structure changes will enable our teams to focus on what we do best – brewing great beer for everyone and earning our place in the moments that matter.”
A-B employs 19,000 U.S. workers, according to the company’s website. If that employee count is accurate, the company cut somewhere under 380 employees today.
Bud Light and other A-B brands have continued to post declines in scan data amid a conservative-led boycott of the company, following its influencer promotion of Dylan Mulvaney.
In the latest week (ending July 16), Bud brand family dollar sales declined -20.1% year-over-year (YoY) and volume declined -23.6% in off-premise channels (multi-outlet plus convenience), according to data shared by Circana. The brand remains the No. 1 beer brand by volume, but No. 2 by dollar sales, with Constellation Brands’ Modelo taking the top spot.
Other top A-B brands to post dollar sales or volume declines in the latest week include:
- Michelob (dollar sales +0.5% YoY, but volume -2.4%);
- Busch (dollar sales -0.6%, volume -6.6%);
- Bud speciality (dollar sales -16.3%, volume -19.5%);
- Bud Light Hard Seltzer (dollar sales -50.5%, volume -50.1%);
A-B’s total off-premise beer dollar sales declined -10.2% YoY in the latest week, while volume declined -13.8%, according to Circana.
Year-to-date (through July 15), Bud Light dollar sales declined -13.6% and volume declined -18% in NIQ-tracked off-premise channels (total U.S. xAOC + liquor plus + convenience). The brand has also lost 1.6 share points of the total beer category, but remains the No. 1 beer brand by dollar sales and volume in NIQ-tracked channels.
Bernstein Autonomous analyst Nadine Sarwat recently wrote that A-B’s market share is at an “all time low” of around 36%. Sarwat added that “it appears that a significant body of former Bud Light consumers have not just boycotted the brand, they have deserted it.”
Per Bernstein’s model, 50% of Bud Light’s share loss “will be permanent, though this is starting to look a bit too optimistic,” Sarwat wrote.