Dutch brewing company Heineken has announced that it will lay off nearly 8,000 employees as part of its overall restructuring programme.

This will amount to total restructuring costs of around €420m and run-rate direct savings on personnel expenses of approximately €350m.

Last year, the restructuring costs amounted to €331m in relation to this programme.

The company noted that the restructuring timelines will change based on the specific situations of its local operations.

The company announced the development in its 2020 full-year results and EverGreen strategic review update.

Under the new plan, the company is seeking to increase productivity starting with €2bn gross savings through 2023.

It also aims to restore its operating profit margin to around 17% by 2023.

Additionally, the company’s profit margins were impacted due to alcohol bans in some markets the Dutch company has been operating.

Net revenue fell 11.9% organically, with a 9.8% drop in total consolidated volume, reported Heineken.

Due to the Covid-19 restrictions, the company witnessed a net loss of €204m.

The company said the consolidated beer volume decreased by 8.1% organically for the full year.

In a statement, Heineken said: “Covid-19 continues to have a material impact on our top-line performance, affecting all geographies and markets as governments across the world took measures to mitigate the contagion including restricted population movement, social distancing, outlet closures and temporary lockdowns of production facilities.”

Heineken anticipates that the market conditions would improve gradually in the second part of the year.

Earlier this month, Heineken acquired full ownership of Brixton Brewery.