Mexico: Grupo Modelo cuts jobs amid crisis and fears of weaker beer volume growth

Mexican brewer Grupo Modelo is slashing 1,200 jobs as the global economic downturn hits beer sales, Reuters cited a company statement on March, 31.

Modelo, which makes the famous Corona beer, began firing staff at its plant in Mexico City on March, 30.

"To be able to confront the difficult economic situation ... the company has been forced to reduce its workforce by 1,200 people," said Modelo spokeswoman Jennifer Shelley.

Modelo on Oct. 27 warned of weaker volume growth in Mexico and other export markets, citing the current financial crisis hitting markets worldwide.

Mexico's economy began to slow sharply early last year after the U.S. housing market collapsed and pushed the United States, which buys 80 percent of Mexican exports, into recession.

Modelo is 50 percent owned by global brewing company AB InBev and competes with rival Mexican beermaker FEMSA. The other 50 percent of Modelo is in the hands of a voting trust run by a group of closely connected Mexican families.

01 April, 2009