Tuesday, August 12, 2008

This Won't be the last time this happens

It was announced this week that A-B will start working towards reducing its workforce by 10 to 15 % by the end of this year. While this may not all be a direct cause of the recent InBev buyout I'm sure that didn't help matters.
As stated don't put all the blame on InBev for this maneuver as A-B was already working to reduce costs, but as I stated in my earlier posts let's not kid ourselves either. As I've said many times, the biggest loss in this InBev situation isnot A-B, it'sthe workers that are going to lose their job's, and in today's economy thats a shame. I'm sure that InBev will be instituting their own cost cutting manuevers, but let's hope its not too extreme.

1 comment:

Chipper Dave said...

This is a typical first move in consolidating a large merger. I went thru it years ago when HP bought out Compaq. All this does is start to erode employee morale. Shareholder equity is the only thing that matters to the company. Sad but expected move.