View Cart (0 items)
Food & Beverage

Anheuser-Busch InBev to cut 1,400 US jobs

December 10, 2008
/ Print / Reprints /
| Share More
/ Text Size+

Anheuser-Busch InBev announced it would cut some 1,400 U.S. jobs -- or another 6 percent of its U.S. work force -- to help save the world''s largest brewer at least $1.5 billion a year, as reported by the Associated Press. Three-quarters of the jobs cut will disappear from Anheuser''s North American headquarters in St. Louis, both at downtown offices and a campus in suburban Sunset Hills, Mo. A letter employees received said affected workers had not yet been notified, and they will likely be people who hold engineering, information technology and other corporate positions. Unionized workers at the company''s twelve North American breweries will not be affected. The latest job cuts go beyond plans Anheuser-Busch announced this summer to streamline costs, before it agreed to be taken over by Belgium-based InBev. Most of the cuts will be made by the end of the year. Anheuser-Busch president David A. Peacock said in the letter that there are overlapping job functions related to the buyout by InBev, along with a need for cost-cutting and lowering capital expenditures. The company has strong ties to the St. Louis area, where its namesake beers have been brewed for more than 150 years. Anheuser-Busch had 8,600 salaried workers this summer and had planned to reduce that by 10 to 15 percent, mostly by offering some 1,000 employees a voluntary early retirement package. That aimed to save the brewer some $1 billion a year. More than 250 unfilled jobs will be slashed and an extra 415 contractor positions will be eliminated. About a quarter of the jobs to go will be in field and brewery locations, it said. InBev had pledged not to close any of the breweries as long as it was not forced to pay any extra taxes. The redundancies will cost the company $197 million before taxes, mostly in severance payments and pension benefits. The takeover deal gave InBev control over America''s iconic Budweiser beer -- and gave Bud the chance to sell more widely into rapidly growing markets in Latin America, eastern Europe and Asia where InBev draws most of its profit. Beer sales in Europe are slowly declining as the economy weakens there. In North America Anheuser-Busch reports sales are still growing, even as the company passes along price increases to consumers to recoup higher input costs.

You must login or register in order to post a comment.

Related Events