The Danish brewery Carlsberg announced on Thursday that it will lay off at least 270 employees in Denmark, Norway, and the Baltic countries as part of a series of restructuring schemes in response to increased market uncertainties.
These changes are a result of specific situations in certain markets, as well as a continuation of initiatives already undertaken in France, Britain, and Italy, said CEO Jorgen Rasmussen. Carlsberg announced 400 layoffs in France and Britain last year as part of a restructuring process following the successful acquisition of part of the assets of the largest British brewer Scottish & Newcastle (S&N)."We are striving to proactively accelerate efforts aimed at improving our efficiency and expect a greater degree of uncertainty and risk in the market in the future," added Rasmussen.
Since last year’s acquisition of half of S&N, Eastern Europe has accounted for about half of Carlsberg’s profits. Carlsberg, which produces beers Tuborg, Holsten, Baltika, and Kronenbourg in addition to its Carlsberg brand, has been severely affected by uncertainties in Russia, its most important growth market. Since the beginning of 2008, its shares have weakened by 65 percent. Following the announcement of new layoffs, its stock price fell by as much as six percent. In the domestic market, Carlsberg plans to respond to declining sales by accelerating the restructuring process, which will result in the layoff of 124 employees, in addition to the 80 previously announced layoffs. Carlsberg’s unit Rignes in Norway has also decided to implement a series of initiatives, which include significant cost reductions and a decrease in the number of employees, the company announced. The company plans to begin the announced layoffs in the first quarter of 2009, but did not specify the planned savings or costs of this move. (H)
