In view of the prevailing economic crisis, the Nigerian Breweries Plc said it has concluded plans to trim down staff as part of the company’s recovery strategy and operational efficiency.
The Company said it would take wide-range of reorganisation measures which will include temporary shutting down of two of its nine breweries in Nigeria.
In a statement signed by its Corporate Affairs Director, Sade Morgan, the Company reiterated plans to relocate and redistribute the company’s employees to the seven remaining breweries.
The Company said for staff who would be effected by the reorganisation measures, plans has been concluded to extend severance packages to them.
In a Letters signed by Grace Omo-Lami, of the Human Resource Department, and addressed to the leadership of the National Union of Food, Beverage & Tobacco Senior Staff Association, the Company informed both unions that the recovery measures are in accordance with labour requirements.
The company have however invited the unions to a discussions on the implications of the proposed measures.
The company reiterated that it recently informed the Nigerian Exchange Group of its strategy to raise N600 billion capital by means of a rights issue, as a way of restoring the company’s balance sheet given the net finance expenses of N189 billion incurred in 2023 propelled mainly by a foreign exchange loss of N153 billion as a result of the naira devaluation.
Managing Director/CEO Nigerian Breweries Plc, Hans Essaadi, while speaking on the issue said, “The tough business landscape characterised by double-digit inflation rates, naira devaluation, FX challenges and diminished consumer spend has taken its toll on many businesses, including ours. This is why we have taken the decision to further consolidate our business operations for efficient cost management and optimal use of our resources for future sustainable growth.
“We remain wholly committed to having a positive impact on our host communities and our consumers; leveraging our strong supply chain footprint; excellent execution of our route to market strategy; and our rich portfolio of brands across the lager, stout, malt, soft drinks, and energy drinks categories; and more recently, wines and spirits with the acquisition of distell.’’
