Anheuser-Busch InBev
said it plans to cut hundreds of jobs at its U.S. offices as it faces a boycott which has tanked sales at its flagship American brand Bud Light.
AB InBev
(ticker: BUD) will cut less than 2% of its roughly 18,000 U.S. workforce, The Wall Street Journal reported late on Wednesday.
“While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success,” Brendan Whitworth, CEO of the company’s North American business, said in a written statement, according to the Journal.
Bud Light sales have been hit by the backlash that followed the brand’s marketing partnership with transgender social-media personality Dylan Mulvaney. AB InBev didn’t immediately respond to a request for comment from Barron’s as to the reasons for the job cuts.
The controversy over the Bud Light promotion has continued in recent days, with Florida Gov. Ron DeSantis calling on state administrators to investigate the state’s investments in AB InBev shares.
American depositary receipts of AB InBev were up 1.5% in premarket trading at $59.57. The ADRs have fallen 11% over the last three months through Wednesday’s close, although Wall Street analysts have suggested the company’s stock drop has been overdone compared with its global and long-term prospects.
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