E-Malt.com News article: 1525

The Netherlands’ beer maker, Heineken Holding N.V., announced on September 5, that its 100% subsidiary Heineken Nederlands Beheer B.V. has stated that it will implement a number of reorganisational activities to safeguard its long-term business development.

As a result Heineken expects that in two years time, 450 job functions will cease to exist, the company said. Agreement was reached with the trade unions on a 'social plan' at the end of 2002. To cover costs of reorganisation, provisions will be made of approximately € 70 million before tax, which will be charged to the 2003 consolidated profit and loss account of Heineken N.V. It is expected that these costs will be recovered in three years.

“With the gradual structural decline in the Dutch beer market expected to continue, Heineken is convinced that the proposed measures are necessary to maintain its leading position in the Netherlands.”

”The emphasis in all cases will be on improving efficiency and cutting costs, which will mean centralising a number of support departments. To minimise the impact on the personnel, the plan agreed between Heineken and the trade unions at the end of 2002 guarantees that the employees affected will be given full assistance, for a year to eighteen months, to find new jobs, in the first instance within Heineken and, if that cannot be arranged, outside the company.”


05 September, 2003