Bud Light maker Anheuser-Busch announced on Wednesday that it will begin layoffs across its U.S. corporate staff. The company said the restructuring is aimed at streamlining its organization by reducing layers within, CNN reported.
“Today we took the very difficult but necessary decision to eliminate a number of positions across our corporate organization,” Anheuser-Busch CEO Brendan Whitworth said in a statement, per CNN. “While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success.”
According to the statement, the layoffs will only account for “less than 2%” of the total Anheuser-Busch U.S. employee population. With the company employing “more than 19,000 employees nationwide,” this translates to approximately 380 positions set to be eliminated.
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The company clarified that the frontline staff, including brewery and warehouse staff, drivers, and field sales personnel, among others, will not be affected by the job cuts.
In May, Modelo Especial, a Mexican lager, surpassed Bud Light as America’s top-selling beer, a position Bud Light had held for over two decades. The brand had been facing challenges from a subset of its customers due to a brand partnership with transgender influencer Dylan Mulvaney in April. Since then, Bud Light has seen sales decline, dropping 28% in June , and announced its “biggest summer campaign ever” to reel customers back in.
However, earlier this month, Bud Light CEO Michel Doukeris said that the boycotts have had minimal impact on the company’s overall sales and will likely not have a lasting effect.
“With this perspective, and in the context of our global business, we believe we have the experience, the resources, and the partners to manage this,” Doukeris said at the time.
This story originally appeared on Entrepreneur
