Anheuser-Busch Announces Layoffs as Bud Light Boycott Impacts Sales

Bud Light endorsement backlash

Company to let go of hundreds of corporate employees following conservative-led consumer boycott

Anheuser-Busch, the leading brewing company, is set to lay off hundreds of corporate employees in the wake of a significant decline in sales caused by a boycott of Bud Light. The boycott was triggered by a product endorsement from Dylan Mulvaney, a transgender influencer, which sparked a backlash among conservatives.

According to a company spokesperson's statement to ABC News, the layoffs will affect less than 2% of Anheuser-Busch's U.S. employees, approximately totaling 380 workers. The job cuts will be spread across various corporate functions, but the company reassures that frontline workers, including warehouse staff, drivers, and salespeople, will not be affected.

CEO Brendan Whitworth expressed the difficulty of the decision, emphasizing that it was necessary to ensure the company's long-term success. The layoffs, first reported by CNN and the Wall Street Journal, come as Bud Light sales experienced a substantial decline for at least six weeks following the boycott. Data from Bump Williams Consulting and Nielsen NIQ revealed that sales plummeted by nearly 26% during the week ending on May 20.

As a result of the boycott's impact on sales, Modelo claimed the top spot as the best-selling beer in the U.S., surpassing Bud Light in popularity. The company's stock price also took a hit, falling by nearly 12% since the boycott began in early April. In contrast, the S&P 500 saw a rise of almost 12% during the same period.

To address the declining sales and support its workforce, Anheuser-Busch InBev extended financial assistance to tens of thousands of frontline workers at independent distributors, as revealed by CEO Michel Doukeris on an earnings call in May.

In April, CEO Brendan Whitworth published a statement on the company's website, expressing the company's commitment to unity and acknowledging unintentional involvement in divisive discussions. Following the incident, two executives responsible for the endorsement of Dylan Mulvaney's Instagram post were placed on leave, as reported by the Wall Street Journal.

The company's response received criticism from some LGBTQ advocates who considered it a concession to the boycott. Consequently, the Human Rights Campaign, the nation's largest LGBTQ advocacy organization, suspended the company's Corporate Equality Index score, previously holding the top rating of 100.

The layoff announcement marks a challenging chapter for Anheuser-Busch as it navigates through the aftermath of the boycott and strives to position itself for future growth and success.