Carlsberg cuts 2000 jobs after devaluation in China and Russia

carlsberg

It is not Danish beer who is quenching the thirst to Russian and Chinese people. A flat beer market in the big countries in the East has made Carlsberg suffer a huge financial loss, which a newly launched saving programme will try to rescue.

2000 people will be without a job when Danish brewer Carlsberg according to their new saving plan. Carlsberg will do thorough cleaning of employes to make up for the loss of 4.5 billion Danish kroner due to poor performance in Russian and Chinese markets.

According to CNN NewSource the maker of Carlsberg, Kronenbourg 1664 and Tuborg beers said its business in China has not performed as expected.

The loss was reported on Wednesday 11 November and compared with a profit of 2.1 billion Danish kroner in the same period last year, and included special items of 7.7 billion kroner, mostly impairment charges related to Carlsberg’s brands in Russia and China.

CEO Cees’t Hart said Carlsberg is launching a saving plan aimed at cutting annual costs by up to 2 billion kroner by 2018. “…the profit development of recent years has not been satisfactory”, he acknowledged.

 

The new saving plan is called “Funding the Journey” should improve profit in Carlsberg, but to do so the plan demands to cut 2000 jobs. 1300 employees has already received the bleak message. It will also consist of gathering previous enterprises and new initiatives.

All together the programme is expected to cost 10 billion Danish kroner in devaluations and expenses of reconstruction, where 8.5 billions Danish kroner will hit the 2015-results.

 

Sources: www.theprovince.com and www.nyhederne.tv2.dk www.money.cnn.com

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