Heineken’s 6,000 Job Cuts Raise Concerns for South Africa Workforce

Heineken’s 6,000 Job Cuts Raise Concerns for South Africa Workforce

  • Heineken faces layoffs as the brewing giant cuts 6000 jobs over the next two years
  • The company said retrenchments are the cause of a sharp decline in sales, with the sharpest drop in Europe and the Americas
  • The company employs around 5000 South Africans, and layoffs have caused alarm, considering the country's already high unemployment

Heineken retrenchments
Heineken has announced layoffs of 6000 jobs globally. Image: Phillipe Huguen/ Getty Images
Source: Getty Images

The Dutch brewing giant Heineken has announced plans to cut between 5,000 and 6,000 jobs globally over the next two years, citing “challenging market conditions” and falling beer sales.

The decision has sparked concern in South Africa, where the company employs nearly 5,000 people and the country is already grappling with one of the highest unemployment rates in the world.

Heineken announces layoffs

Heineken said overall beer volumes declined by 2.4 per cent last year, with the sharpest drops recorded in Europe and the Americas. Chief executive Dolf van den Brink warned that the company would accelerate productivity measures to unlock savings, acknowledging that near-term market conditions remained uncertain.

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The announcement comes weeks after van den Brink revealed he would step down after six years at the helm, describing his tenure as a period marked by “turbulent economic and political times.”

Hieneken in SA

In South Africa, Heineken Beverages is a major player following its acquisition of Distell and merger with Namibia Breweries Limited.

The group produces popular local brands such as Savanna and Amarula alongside Heineken and has positioned itself as a significant industrial employer.

Any reduction in its workforce would land heavily in an economy where millions of households are already under strain from persistent joblessness and rising living costs.

Impact to cut 400 jobs

In related news, packaging manufacturer Mpact has issued retrenchment packages to its workers, cutting 400 jobs. The JSE-listed company, spun off from the Mondi Group, announced on 3 February 2026, that it could not compete with cheaper imports and a stronger rand made local production uncompetitive. The company, which is South Africa's only cartonboard producer, is set to close in March 2026.

SA labour markets shed significant jobs in 2025

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As the year drew to a close in 2025, Briefly News took a look at the industries with the most job losses during the year. The retail sector proved to be the hardest hit, with grocery giants like Pick'n Pay reporting a 12% drop in sales, prompting widespread retrenchments.

Cashiers, shelf-packers an supervisors were the first to go. Furthermore, loadshedding, although mitigated in 2025, left lasting scars, forcing the closure of more than 150 stores.

Coca-Cola retrenches 588 workers

Coca-Cola in South Africa announced plans to retrench almost 700 South African employees in 2025. It was reported that the beverage production company was planning on closing its plants in the Eastern Cape and the Free State. The company disclosed that it is responding to changing industry conditions and that it is in consultation with unions and the affected employees during the process, a claim rejected by the Food and Allied Workers Union.

Heineken retrenchment
Heineken's retrenchment plans have raised concerns for South Africa's workforce. Image: Per-Anders Pettersson/ Getty Images
Source: Getty Images

Previously, Briefly News reported that Martle Keyter ,CEO of Motor Industry Staff Association (MISA), warned that the decision by US President Donald Trump to impose 30% tariffs on the export of vehicles, components,and exported from SA to the United States will kill any possible economic growth in the country. With the rise of the SA unemployment rate to 32,9% in the first quarter of 2025, the worry remained that employers closing their doors would raise the rate even more.

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Source: Briefly News

Authors:
Mbalenhle Butale avatar

Mbalenhle Butale (Current Affairs writer) Mbalenhle Butale is a dedicated journalist with over three years newsroom experience. She has recently worked at Caxton News as a local reporter as well as reporting on science and technology focused news under SAASTA. With a strong background in research, interviewing and storytelling, she produces accurate, balanced and engaging content across print, digital and social platforms.