Carlsberg said to plan more cuts in Russia, Europe and Asia

Carlsberg A/S, the world's fourth-biggest brewer, plans more job cuts across the globe as it struggles to control costs amid tough conditions in markets like Russia and Europe, a person familiar with the matter said.

PHOTO: BLOOMBERG

AUG 26, 20159:09 PM

[LONDON] Carlsberg A/S, the world's fourth-biggest brewer, plans more job cuts across the globe as it struggles to control costs amid tough conditions in markets like Russia and Europe, a person familiar with the matter said.

The reductions will number in the hundreds and affect operations in Russia, Western Europe and Asia, said the person, who asked not to be identified as the details and timing of the move have not been finalized. The company has already eliminated about 180 office jobs in its Copenhagen headquarters and in regional outposts to "build a more agile organization," it said in May.

The maker of Kronenbourg, led by new chief Cees 't Hart, cut its annual profit forecast last week as it grapples with slumping sales in Russia and slower-than-expected cost savings in Western Europe. Carlsberg plans to makes "all the changes necessary" to cope with the tougher environment, Chief Financial Officer Joern P. Jensen told investors last week.

"Carlsberg has committed to reducing its cost base," spokesman Jim Daniell said by e-mail. "The program is underway at the company's central office and in countries, but please understand that we will always speak to employees in the first instance if there are to be future steps."

The company has started a strategic review of its business in Russia, which accounts for just under 20 percent of profit, according to Sanford C. Bernstein estimates. In an internal memo obtained by Bloomberg in May, the company said that its resources, including people and money, will be focused on its most promising 15 markets.

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