jaggzy:
Guinness Nigeria Plc is downsizing....i think the Economy is really in a mess if a Big Multi national is really depleting its staff strenght by half.

Martins301:


The company is downsizing because of projected decline in sales. Rain season is generally bad for companies like Guinness. Once sales pick up, the situation will return to normal

GentleNaaz:
Click like for "blame Buhari", share for "blame GEJ"

madone:
the question is how can one leverage on this their downsizing.are they sacking or selling share or what

TPAND:


I disagree, beer is no taste quencher. Objectively the foreign exchange policy is affecting many multinationals as they can't meet up their project earnings when converted to dollars. The only option is to downsize.

madone:
the question is how can one leverage on this their downsizing.are they sacking or selling share or what

davide470:
What is affecting Guinness, aside full access to FX at official rate for raw material importation is stiff competition from NB. Note that NB has the largest market share in the brewery space.

Also, with news like this, some investors would likely sell off, making their share price reduce a bit but with the cost cutting measure being put in place, gradual phase out of FX restrictions by the CBN, Guinness being a solid brand and their soon-return to profitability, it is wise to invest now that the share price is low.

More so. I prefer to use the word: Layoff as against Downsizing.

Yeah, exactly what I think as well, the recent dollar crunch has really increased the operating cost of most of these multinationals. Add the fact that quite a lot of them also heavily suffered from foreign exchange loss last year, I mean those that are financed by foreign loans.

.....But I expect Guinness would bounce back soon as sales would improve once Euro 2016 commences.

LastMumu:
Yeah, exactly what I think as well, the recent dollar crunch has really increased the operating cost of most of these multinationals. Add the fact that quite a lot of them are also heavily suffered from foreign exchange loss last year, I mean those that are financed by foreign loans.

.....But I expect Guinness would bounce back soon as sales would improve once Euro 2016 commences.

LastMumu:
You are right to a certain extent, the reason why many multinationals are panicking at the moment is because of the current foreign exchange palava bedevilling the nation, though their demise goes beyond "converting projected earnings into dollars". The recent dollar crunch means most multinationals like Guinness and co that rely heavily on importation for production have to source for dollar to purchase raw materials, albeit at high cost. The recent astronomical increase in cost means their bottom line would be impacted negatively as their operating cost skyrockets.

TPAND:


I disagree, beer is no taste quencher. Objectively the foreign exchange policy is affecting many multinationals as they can't meet up their project earnings when converted to dollars. The only option is to downsize.

Martins301:


The company is downsizing because of projected decline in sales. Rain season is generally bad for companies like Guinness. Once sales pick up, the situation will return to normal

jaggzy:
Guinness Nigeria Plc is downsizing....i think the Economy is really in a mess if a Big Multi national is really depleting its staff strenght by half.

feelamong:
Guinness has been a poorly runed coy for some time now...
In times of recession; are they not aware that it's the cheaper brands of beer that sell most?
Moreover if the Managers of Guinness has taken time to do theisustained theyarch over the years they should have seen what NB Plc saw that made them to acquire a lot of small local breweries that produce regional brands.
As it is, Guiness brands are expensive; and as we all know the Higher middle class and the rich do not drink beer that much..they go for the red wines and Champangnes......
The lower Middle class who drink these brands are now affected by the bad economy

Martins301:


The company is downsizing because of projected decline in sales. Rain season is generally bad for companies like Guinness. Once sales pick up, the situation will return to normal