Anheuser-Busch InBev said it plans to cut hundreds of jobs at its U.S. offices. Sales of the company’s flagship brand Bud Light have dwindled after a consumer boycott.
AB InBev (ticker: BUD) will
cut less than 2% of its roughly 18,000 U.S. workforce. The company said the cuts wouldn’t affect its front-line employees, which include brewery and warehouse staff, drivers, and field sales, among others. AB InBev didn’t give a reason for the job cuts.
“While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success,” Brendan Whitworth, CEO of the company’s North American business, said.
The beer maker’s Bud Light brand has been the subject of controversy. Sales of Bud Light—the best-selling beer brand in the U.S. up until recently—have been declining since the spring when the brand worked with transgender social-media personality Dylan Mulvaney on a marketing campaign. The promotion and subsequent actions sparked waves of criticism, most recently from Florida Gov. Ron DeSantis, and boycotts.
The backlash has shown up in AB InBev’s American depositary receipts, too. Shares have fallen 11% over the past three months, though are off their lows for the year. Some Wall Street analysts have suggested the company’s stock drop has been overdone compared with its global and long-term prospects.
Shares today edged slightly higher Thursday amid a broader market rally.
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