Bud Light lays off hundreds of workers after Dylan Mulvaney controversy, losing top spot to Modelo

After a controversial partnership with transgender TikTok personality Dylan Mulvaney resulted in months of Bud Light’s slumping sales, Anheuser-Busch InBev announced that it laid off hundreds of workers.

Brendan Whitworth, CEO of Anheuser-Busch, the world’s largest brewer, on Wednesday said the company did not make the decision to cut staff “lightly” but was prioritizing its “future long-term success,” The Wall Street Journal reported.

“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 said. “These corporate structure changes will enable our teams to focus on what we do best — brewing great beer for everyone.”

Whitworth clarified the layoffs included corporate and marketing roles at U.S. offices in St. Louis, New York and Los Angeles. It did not impact brewery and warehouse staff, the company said.

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Anheuser-Busch employs roughly 18,000 workers across the U.S.

FOX Business reached out to Anheuser-Busch for comment, but a response was not immediately received.

The cuts come as Bud Light sales fell nearly 30% compared to 2022 amid boycotts after it partnered with the transgender social media influencer.

Bud Light sent customized cans to Mulvaney, who identifies as a female, to celebrate “365 days of girlhood.”

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“We never intended to be part of a discussion that divides people,” Whitworth said in April, as the protests began impacting the company’s bottom line. “We are in the business of bringing people together over a beer.”

In June, Whitworth addressed customers again in a post telling them “we hear you” but did not apologize for the partnership.

“We recognize that over the last two months, the discussion surrounding our company and Bud Light has moved away from beer, and this has impacted our consumers, our business partners, and our employees.”

“We are a beer company, and beer is for everyone,” he continued. “As we move forward, we will focus on what we do best — brewing great beer and earning our place in moments that matter to you.”

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In the fallout of the campaign, Anheuser-Busch placed two employees on leave: Alissa Heinerscheid, vice president of marketing for Bud Light, and Daniel Blake, Budweiser’s group vice president for marketing.

Bud Light also lost its top spot as the No. 1 selling beer brand on a dollar basis to Modelo Especial.  

The sales of Coors Light and Miller Lite increased by 25.8% and 21.4%, respectively, over the same period.

Anheuser-Busch will release its quarterly financial report next week.