Anheuser-Busch InBev has announced its intention to downsize its U.S. workforce due to a sharp decline in sales of its flagship beer brand, Bud Light. The company plans to eliminate a small percentage, less than 2%, of its approximately 18,000 employees in the United States, according to a report by The Wall Street Journal. This move comes as AB InBev attempts to address the challenges it currently faces and secure long-term success.
CEO of AB InBev’s North American business, Brendan Whitworth, emphasized the importance of making difficult decisions for the sake of the organization’s future growth and prosperity. In a written statement, Whitworth expressed the company’s commitment to adapt and overcome obstacles in order to thrive.
The decline in Bud Light sales can largely be attributed to the controversy that arose following the brand’s partnership with transgender social-media personality, Dylan Mulvaney. AB InBev has yet to comment on the specific reasons behind the job cuts.
The backlash against the Bud Light promotion has intensified recently, with Florida Governor Ron DeSantis urging state officials to investigate their investments in AB InBev shares. This indicates the severity of the situation and the potential impact it may have on both the company and its investors.
Despite these challenges, American depositary receipts of AB InBev saw a 1.5% increase in premarket trading, reaching a value of $59.57. While the company’s stock has experienced an 11% decline over the past three months, analysts believe that this drop may have been excessive considering AB InBev’s global presence and long-term prospects.