Budweiser Brewing Company APAC, the Asian subsidiary of Belgian brewing giant AB InBev, plans to cut thousands of jobs this year to reduce costs, sources familiar with the matter told Bloomberg.
Budweiser APAC is struggling with weak consumer spending in China. Last year, around 4,000 of the company's 25,000 jobs were cut, and several thousand more could be eliminated this year.
The company aims to reduce operational costs by approximately 15%, according to anonymous sources. The largest impact will be in China, where about 80% of the employees of the Asian AB InBev subsidiary work.
Brewers are facing challenges in China due to slowing economic growth and a real estate market crisis. Budweiser APAC reported a net loss of $16 million (€14.7 million) in the fourth quarter. For the entire year of 2024, profits dropped by 15% and revenue by 9%.
In an effort to revive the Chinese branch, a CEO change was recently announced. Belgian Jan Craps will step down on April 1 and will be succeeded by Yanjun Cheng. Budweiser APAC will continue its downsizing plans for some time. In 2017, the company employed over 30,000 people.
