FRANCE: Carlsberg axes Kronenbourg jobs in reorganisation
Carlsberg is looking to cut 15% of its workforce at its French subsidiary Brasseries Kronenbourg.
The brewer, which took control of Kronenbourg when it teamed up with Heineken to buy Scottish & Newcastle earlier this year, confirmed today (23 October) that a "complete reorganisation" of the unit will lead to 214 job losses by the end of 2010. Kronenbourg currently employs 1,400. The unit said it intended to carry out the project with social responsibility towards its employees.
The announcement is an attempt "to make the company dedicated to satisfy the needs of customers and consumers and thereby improve the market share and the profitability", Carlsberg said. Flagship brands Kronenbourg and 1664 will be relaunched as part of the programme.
The reorganisation will cover "all locations, all functions and all levels" at Kronenbourg, with Carlsberg looking to create "a clearer, simpler and more efficient organisation".
"Our strategic plan will help us increase the sales, win back market shares, stay competitive and restore the profitability," said Kronenbourg's CEO Thomas Amstutz. "From 2009 we want to win back the consumers by relaunching the two main brands Kronenbourg and 1664 and by improving the partnership with the customers by the quality of our services and our expertise at the point of sale."
Kronenbourg, the market leader in its domestic beer market, has suffered more than most of late in France. The introduction of stronger legislation against alcohol in the country as well as the general economic slowdown has seen the market leader lose share in France.
In August, Amstutz moved from Carlsberg's Feldschlösschen subsidiary in Switzerland to replaces Tim Seager at Kronenbourg. Seager became CEO in December last year, having replaced Yves Couette, who had held the hot seat for only 13 months.
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