South African Breweries (SAB), the local subsidiary of global brewing giant AB-InBev, is preparing to retrench 233 employees from its logistics division as part of an operational restructure aimed at reducing duplication across its national depot network.

The looming job losses come just months after a previous wave of retrenchments, adding to growing unease among employees and unions over SAB’s post-merger strategy.

The Food and Allied Workers Union (FAWU), the largest trade union representing SAB workers, received formal notice of the company’s intention to begin the retrenchment process via a memorandum dated 29 May 2025. The letter, signed by Bathandwa Madela, SAB’s director of labour relations, was also sent to the Commission for Conciliation, Mediation and Arbitration (CCMA) to initiate a Section 189 retrenchment consultation, as required in terms of the Labour Relations Act (LRA).

“We intend to consult with you to discuss the proposed restructuring and its impact on the employees, including possible retrenchment, alternatives, selection criteria and the severance package, if the retrenchments cannot be avoided,” Madela wrote in the five-page memo.

SAB has also requested that the CCMA appoint a facilitator to manage the consultation process.

Structural Realignment in Logistics

According to SAB, its current logistics structure is no longer aligned with the company’s evolving operational requirements. The restructure aims to eliminate role duplication and introduce new responsibilities that better support the company’s warehouse and stock control functions.

Among the changes, SAB plans to phase out positions such as checker operators and warehouse checkers, replacing them with a new role given the title, “warehouse leads”. These new roles will reportedly take on a broader scope, including administrative tasks and inventory oversight.

Should retrenchments proceed as planned, SAB will issue formal notices from 1 August 2025, with affected employees expected to serve out their notice periods during the same month.

Depot Staff at Risk

The retrenchments will affect workers across SAB’s 15 dry depots and seven wet site depots countrywide. These are critical logistics nodes responsible for transporting SAB’s vast portfolio of beer brands to retail outlets, taverns and hospitality venues nationwide.

The brewer currently employs about 5 400 people. In the past 12 months alone, it has already laid off 64 employees, signalling a consistent pattern of workforce contraction under its post-merger business model.

Growing Union Concerns

FAWU is expected to respond forcefully in the coming weeks, especially as this marks yet another instance of job losses at the company since the controversial $122bn AB-InBev takeover of SABMiller in 2016, a deal whose long-term implications for South African workers continue to reverberate.

SAB has yet to comment publicly on the proposed restructuring.

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