The mega-merger between AB InBev and SABMiller—which is expected to complete by Oct. 10th—could result in up to 5,500 jobs being cut, according to the Fortune.
WHY IT MATTERS
The greatest amount of damage this impending merger inflicts will be on the merging companies themselves. And yet, everyone keeps asking, “How will this affect craft beer?” For some perspective, AB InBev currently employs 150,000 people alone.
The Financial Times reports that the new firm will try to cut a sum of around $1.4 billion in costs annually over a period of four years. This kind of cost cutting could well lead to further layoffs during that period.
Meanwhile, these cuts could mean yet more positive news for craft beer, especially its larger breweries. Several larger craft breweries are installing new talent at an executive level. With the macro layoffs could come a high volume of new talent looking for new brewing challenges. As craft becomes larger, there's plenty of opportunity for former Miller/AB employees to make their mark.
AB InBev/SABMiller Deal to Yield $2 billion in Fees and Taxes [The Financial Times (paywall)]