Reorganisation at Heineken in the Netherlands
AMSTERDAM, The Netherlands–(BUSINESS WIRE)–Sept. 5, 2003
Heineken N.V. today announced that its 100% subsidiary Heineken Nederlands Beheer B.V. has stated that it will implement a number of reorganisational activities.
As a result Heineken expects that in two years time, 450 job functions will cease to exist. Agreement was reached with the trade unions on a ‘social plan’ at the end of 2002. To cover costs of reorganisation, provisions will be made of approximately EUR 70 million before tax, which will be charged to the 2003 consolidated profit and loss account of Heineken N.V. It is expected that these costs will be recovered in three years.
For further information, please find attached the Heineken Nederlands Beheer B.V. press statement.
Heineken N.V. and Heineken Holding N.V. shares are listed on the Amsterdam stock exchange. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEHN NA and on the Reuter Equities 2000 Service under HEIA.AS and HEHN.AS. Additional information is available on Heineken’s home page: http://www.heinekeninternational.com.
To enable the company to continue operating on a sound basis in the future, a number of organisational changes are to be implemented within Heineken’s various divisions in the Netherlands. These changes, which will be phased in over a two-year period, are expected to result in 450 job losses. Agreement was reached with the trade unions on a ‘social plan’ at the end of 2002.
The reorganisation will involve all divisions of Heineken in the Netherlands and will affect personnel at all levels. The emphasis in all cases will be on improving efficiency and cutting costs, which will mean centralising a number of support departments. To minimise the impact on the personnel, the plan agreed between Heineken and the trade unions at the end of 2002 guarantees that the employees affected will be given full assistance, for a year to eighteen months, to find new jobs, in the first instance within Heineken and, if that cannot be arranged, outside the company.
To meet the cost of this reorganisation, which the company expects to recoup in full within three years, a provision of EUR70 million is being formed in 2003.
With the gradual structural decline in the Dutch beer market expected to continue, Heineken is convinced that the proposed measures are necessary to maintain its leading position in the Netherlands.
Zoeterwoude, 5 September 2003
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