UB lays off senior, mid-level employees to ensure future-ready organisational structure

In the midst of uncertain demand outlook for beer industry, maker of the Kingfisher beer United Breweries (UB) has laid off some of its senior and mid-level employees to ensure lean, efficient and future-ready organisational structure. Media reports suggest that 150 employees have been laid off. The company said that these layoffs have taken place after a comprehensive review of the organisational structure. As per media reports, the number of laid-off employees comprise 5 per cent of the beer maker’s almost 3,000 strong workforce.

 The employees who have been laid off have been provided with support like severance benefits, access to outplacement services, health benefits and counselling services. The alcohol maker, which was formerly owned by Vijay Mallya, clarified that these layoffs have nothing to do with Dutch beer maker Heineken acquiring a controlling stake in United Breweries.

 “United Breweries Ltd has reviewed its organisation structure to ensure it is lean, efficient and future-ready in light of the rapidly evolving market circumstances. The restructuring is not triggered by Heineken's acquisition of the controlling stake of United Breweries. It is a result of a comprehensive review of the organisation structure which is a part of a broader project that began last year. As an outcome of this review, some positions have been impacted and those colleagues have been extended support including severance benefits, access to outplacement services, health benefits, and counselling services through this transition,” a UB spokesperson told BusinessToday.In.

 Earlier this year, the ownership of United Breweries had passed on to Heineken. The Dutch multinational had pushed its shareholding in UB from 46.5 per cent to 61.5 per cent.

 (This story mistakenly said UB was owned by Vijay Mallya. It has been corrected to reflect the company's new owner)

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