Denmark & Russia: Carlsberg cuts about 180 jobs to save money

Carlsberg cut about 180 office jobs as the Danish brewer seeks to save money and offset the challenge of a shrinking economy in Russia, where it’s the biggest brewer, Bloomberg reported on May 20.

About 20 percent of the staff at Copenhagen headquarters and regional offices have lost their jobs, the company said in an e-mailed statement on May 20. About 75 positions were eliminated in Denmark.

The measures are intended “to streamline our business and build a more agile organization,” spokesman Jim Daniell said by e-mail. The benefits of the measures will be reflected in 2016 financial targets, he added.

The maker of Kronenbourg promised a revamp to improve profit when it reported earnings earlier this month. Russia, once its crown jewel, has weighed on Carlsberg during the past few years, and the operating loss for its eastern European business widened in the first quarter.

“As we’ve grown as a company, we’ve become more complex and fragmented, and this needs to be addressed,” the brewer said in an internal memo distributed to employees and obtained by Bloomberg. “Global resources (people and money) will be focused on the top 15 markets which have the best chance of driving scale value today and tomorrow. This list will be reviewed annually.”

The shares traded 1.3 percent higher at 642.50 Danish kroner as of 3:32 p.m. in Copenhagen, reaching the highest intraday level since October 2007 and extending this year’s advance to 34 percent.

Carlsberg, the world’s fourth-biggest brewer, employed an average of 46,832 people last year, of which 31 percent were in Western Europe, according to its annual report. Chief Executive Officer Joergen Buhl Rasmussen will hand the reins to Cees ’t Hart, the company’s first non-Danish CEO, in June.

Earlier this week, Carlsberg confirmed local media reports of plans to cut expenses at its headquarters, without giving further details.

22 May, 2015