In the wake of declining Bud Light sales, Anheuser-Busch InBev (NYSE: BUD) has announced substantial layoffs across its US offices.
The company, also known for brands like Budweiser and Michelob Ultra, confirmed that less than 2% of its approximately 18,000 US workforce would be affected, sparing its brewery and warehouse staff. “While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success,” claimed AB InBev CEO Brendan Whitworth in a statement. “These corporate structure changes will enable our teams to focus on what we do best—brewing great beer for everyone.”
The layoffs primarily impacted corporate and marketing roles at significant U.S locations, including St. Louis, New York, and Los Angeles. This workforce reduction followed a period of slumping Bud Light sales, which have been on a downward trajectory since April in wake of public backlash against a promotion involving transgender influencer Dylan Mulvaney.
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This controversy contributed to a shakeup in the beer market, with Mexican beer brand Modelo Especial reportedly taking over the top-selling beer position in the US from Bud Light earlier this summer. In the meantime, stakeholders are awaiting the brewer’s forthcoming quarterly financial results come next week for a more complete picture of the Mulvaney controversy’s impact.
Information for this story was found via the WSJ. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
