Dutch beer giant Heineken has seen COVID-19 bite into its sales volumes, forcing it to cut 10 per cent of its global workforce.

Heineken, which has an operation in Jamaica, reported a net loss of US$247.6 million for 2020, compared with a profit of US$2.7 billion for 2019. This is due in the main to bars, pubs and restaurants being shuttered across Europe and America as governments seek to protect citizens from the deadly virus.

Revenues dropped by 17 per cent to US$29 billion. More people are now consuming beer at home, but beer sales fell by eight per cent in 2020.

Heineken CEO Dolf van de Brink explained the fall in the company’s fortunes.

“The impact of the pandemic on our business was amplified by our on-trade (pubs, bars and restaurants) and geographic exposure,” he said.

As part of a restructuring exercise, Heineken will cut some 8,000 jobs across all its operations over the next two years. This move will cost the Group around US$510 million as it looks to create greater efficiencies.

The aim, according to van de Brink, “is about future-proofing the company so we can deliver superior profitable growth. … The world is changing, the industry is changing and we need to change accordingly. It will aim to bring Heineken closer to consumers, improve digital operations and stretch beer and move beyond beer.”

Heineken will be cutting advertising spend as it looks to consolidate. The Amsterdam-based company is forecasting that it will return to operating profit margins of 17 per cent by 2023.