Heineken to cut Irish staff numbers in global shake-up due to pandemic

Company employs approximately 360 people in Ireland, mainly in Cork.

The Dutch brewing giant said the global savings will be achieved by redesigning its organisation, reducing the complexity and number of its products

Heineken plans to cut its global workforce by 8,000 with the brewing giant confirming that its Irish operations, headquartered in Cork, will be impacted.

The Dutch beer group has seen a sharp decline in profits because of global lockdowns and Covid restrictions which have severely impacted bars, hotels and restaurants.

Heineken Ireland employs approximately 360 people mostly at the company's headquarters and brewing operations at Lady's Well in Cork where it produces Murphy’s and Beamish stouts along with other Heineken products. A number of corporate and sales roles are also located in Dublin.

Parent company Heineken NV said the timelines of restructuring will vary depending on the specific circumstances of each of its local operations but said personnel levels at its head office would be reduced by 20% by the end of March.

A spokesperson for Heineken Ireland would not comment on the level of cuts expected here. However, it is understood the reductions in personnel will not be as severe as other countries.

“Like many companies, the Covid pandemic has had a material impact on Heineken Ireland, in particular given the prolonged closure of the hospitality sector in 2020 and into 2021," the company said in a statement to the Irish Examiner.

"In the context of these challenges, we have engaged in a meaningful dialogue with staff representatives on headcount reductions. This will ensure that we are in a position to manage the challenges and opportunities ahead as we continue to focus on supporting our employees, consumers and customers.”

Hospitality is likely to be one of the last sectors to see Covid restrictions lifted as countries across the globe maintain lockdowns to slow the spread of Covid-19.

The world's second-largest brewer said ongoing restrictions on social gatherings and hospitality venues meant 2021 revenue, operating profit and operating profit margin would be below levels in 2019.

It expects market conditions to improve gradually in 2021 and more into 2022, with a slow recovery in European bars and restaurants, less than 30% of which were open at the end of January.

CEO Dolf van den Brink said they were targeting €2bn in savings over the three years to 2023.