Budweiser APAC Plans to Lay Off Thousands to Achieve 15% Cost Reduction

Budweiser Brewing Co APAC is set to lay off thousands of employees this year as part of its strategy to reduce costs amidst declining consumer demand in China, according to insiders.

This latest round of job cuts is part of the company’s initiative to lower operational expenses by approximately 15% this year, following a previous reduction of 16% of its 25,000-strong workforce last year, said one source. This year’s layoffs are expected to remove thousands of additional staff after 4,000 were already let go last year, as noted by those who requested anonymity while discussing confidential matters.

The majority of the cuts will impact China, which represents over 80% of the company’s employee base.

In recent years, the company has been consistently trimming its workforce, reducing its staff by about 20% by the end of 2023 compared to over 30,000 in 2017.

“As we refine our operational structure, we are committed to nurturing innovation and enhancing our workforce to ensure our success,” a spokesperson for Budweiser APAC stated. “We have invested in China for over four decades and remain confident in its growth potential while focusing on our strategic objectives.”

Budweiser APAC’s layoffs illustrate the challenges that global brewers are experiencing in the world’s second-largest economy, where consumer spending has tightened due to an economic slowdown and a slump in the property market. The group, which is under the ownership of Anheuser-Busch InBev, reported a net loss of $16 million in the fourth quarter, falling short of analysts’ prediction of a $6.72 million profit. Over the past year, profits fell by 15% while revenues dropped by 9%.

Other competing breweries are encountering similar difficulties, with both volume and revenue seeing declines for Carlsberg in China last year.

To address the challenges in China, Budweiser APAC has appointed Yanjun Cheng, a company veteran of 29 years, to take over from Jan Craps, who will resign in April after seven years in the role.

Cheng will face various obstacles, including the company’s diminishing reputation within the Chinese market. A report from Hong Kong’s Consumer Council revealed that one of the group’s brands, once favored in Northeastern China, was found to contain vomitoxin, a substance linked to symptoms such as nausea and diarrhea.

This issue was reported by China’s official Xinhua News Agency, which also revealed that Budweiser APAC has frequently violated the country’s advertising regulations. Since May 2021, the group has been fined a total of 1.4 million yuan ($194,000) for these breaches, according to the report.

© 2025 Bloomberg

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