Impacts of the Bud Light controversy surrounding Dylan Mulvaney continued this week when parent company Anheuser-Busch InBev announced it would lay off around 350 people.
“While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success,” Anheuser-Busch CEO Brendan Whitworth said in a statement provided to CNBC and USA Today.
Though Bud Light sales have been dropping for some time, things heightened after the company partnered with transgender influencer Dylan Mulvaney for a March Madness promotional video. This very short video was posted only on Mulvaney’s Instagram page, but it still managed to spark out rage with conservatives, who boycotted the popular beer. Florida Gov. Ron DeSantis even ordered an investigation into the company over it, said CNBC.
In the wake of the controversy, Anheuser-Busch also faced backlash from other consumers, and Mulvaney herself, over its decision not to defend the collaboration,” said CNBC. As Bud Light sales dropped, Mexican beer Modelo Especial became the top-selling beer in the U.S.
Overall, Anheuser-Busch shares have dipped 2% this year, with Bud Light sales down 28% compared to last year as of the week ending June 24. There are an estimated 18,000 Anheuser-Busch employees throughout the U.S., and the recent cut is equal to under 2% of the company’s workforce.
“These corporate structure changes will enable our teams to focus on what we do best − brewing great beer for everyone,” said Whitworth of the job cuts.
However, the Harvard Business Review notes that “getting laid off can feel devastatingly personal and hard on your mental health,” going on to explain that “along with multiple hits from loss of income, status, daily structure, social support, self-esteem, and identity, there’s also the inherent uncertainty that often comes with mapping out your next career move.”
Anheuser-Busch plans to discuss its second quarter financial results next week during an analyst conference call.
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