Title: Anheuser-Busch Announces Layoffs Amid Declining Bud Light Sales
Subtitle: The beer giant cites restructuring needs and a focus on future success
Anheuser-Busch, the maker of Bud Light, confirmed this week that it will be laying off hundreds of its corporate staff positions in the United States. The job cuts are expected to affect less than 2% of the company’s workforce, which consists of approximately 19,000 employees throughout the country. However, it assures that warehouse staff, drivers, and other front-line employees will not be affected.
The layoffs come at a challenging time for Anheuser-Busch as the company has witnessed declining Bud Light sales in recent months. Since April, when the brewer sent a commemorative can to influencer Dylan Mulvaney, the brand has faced backlash and a boycott from conservative critics. Mulvaney, who is transgender, later expressed feeling abandoned by Bud Light after receiving intense bullying and transphobia due to the partnership. LGBTQ+ rights groups also criticized the company for not doing enough to support her.
This negative publicity has resulted in losing market share to competitors like Modelo Especial. For the month ending July 15, Bud Light sales in the US declined by 26.5%, while Modelo sales increased by 13.5%. During this period, Bud Light held a 6.8% share of the US beer market, whereas Modelo surpassed it with an 8.7% share. It is worth noting that both brands are owned by Anheuser-Busch InBev.
Anheuser-Busch stated that the layoffs are necessary for restructuring purposes and to simplify and reduce layers within the company’s organization. CEO Brendan Whitworth emphasized the commitment to long-term future success and focusing on brewing great beer. The company did not mention the layoff schedule explicitly; however, reports suggest that marketing and corporate positions in major US offices, including New York and Los Angeles, have already been affected by the restructuring.
Since the controversy surrounding the association with Mulvaney, the Bud Light brand has found itself entangled in further anti-LGBTQ+ campaigns, including incidents where customers at Target damaged Pride merchandise and clashed with employees. Additionally, social media campaigns targeting Disney and Chick-fil-A have also been attributed to Bud Light.
Despite facing challenges, Anheuser-Busch remains determined to weather the storm, realign its resources, and continue brewing great beer for its customers.