Anheuser-Busch InBev, whose Bud Light sales have recently slumped in the United States, will lay off hundreds of corporate staff in the country, CNN reported, citing a company statement.
The job cuts would represent less than 2% of total employees at the world's largest brewer, but would not include frontline staff like brewery and warehouse staff, drivers, field sales among others, CNN reported.
Anheuser-Busch did not immediately respond to a Reuters request for comment.
Bud Light and Budweiser have recently seen its sales drop in the US after a backlash from conservatives over a social media promotion with transgender influencer Dylan Mulvaney and has been dethroned by Constellation Brands' Modelo Especial as the top-selling beer brand in the country.
Modelo Especial
Earlier this month, data revealed that Modelo Especial was the top-selling beer brand in the United States for a second consecutive month in June, after first dethroning Bud Light in May.
Modelo Especial was the top-selling beer brand for the four weeks ended July 1, with an 8.7% share of overall beer sales through retail stores for the period, while Bud Light came in second with a 7% share, according to consulting company Bump Williams, which sources data from NielsenIQ.
Sales of Bud Light and Budweiser dropped 28% and 11.7%, respectively, from a year earlier, while Modelo Especial sales rose 8.5%.
Lost Customers
"The Bud Light and Budweiser share losses would persist through the year and we believe that the consumers who have opted to move away from those two brands are ultimately lost to the company," said TD Cowen analyst Vivien Azer.
Azer added that consumers had quickly figured out AB InBev's other beer brands like Michelob Ultra and Natural Light, which are also seeing a fall in sales. Before the backlash, Natural Light was gaining due to cost-conscious consumers opting for cheaper six-packs.
