AB-InBev to shed 3 percent of jobs after SABMiller deal

Doesn’t this sound familiar? First comes the deal then the cost cuts? In well-known fashion AB-InBev will reduce its head-count once the SABMiller deal is completed in about two months. AB-Inbev said on 26 August 2016 that 3 percent of its workforce will have to go.

According to a 277-page takeover document, the staff reductions will take place gradually and in phases. Media say that around 5,500 positions could go over a three-year period. The reduction figure does not include sales and front-office staff due to regulatory restrictions.

AB-InBev employs over 150,000 people while the world’s former number two brewer, SABMiller, had 70,000 employees on its payroll. Many of these jobs have already been transferred as part of SABMiller’s disposals.

With the large job cuts, AB-InBev is aiming for an annual pre-tax savings of USD 1.4 billion from the takeover. However, the targeted savings percentage seems to be less compared to AB-InBev’s previous deals.

Separately, AB-InBev has already announced job losses at SABMiller’s global headquarter in Woking, England. It will also close SABMIller’s head office in London and several regional hubs.