Anheuser-Busch, the brewing giant, is contending with the aftermath of a controversial partnership with transgender influencer Dylan Mulvaney. The ill-fated collaboration has led to a staggering $27 billion decline in market value and a drop in sales, prompting the company to announce layoffs affecting around 2 percent of its US workforce, approximately 380 employees.

CEO Brendan Whitworth stressed that the restructuring is crucial for long-term success. Affected employees will receive severance pay, six months of continued health insurance, and job assistance. Frontline workers are exempt from the layoffs.

The partnership’s backlash and the ensuing controversy have significantly damaged Bud Light’s popularity, pushing it out of the top ten beers in the US by dollar sales. Modelo, distributed by Anheuser-Busch, has taken the lead in sales.

The fallout highlights the challenges of navigating cultural and political issues in marketing campaigns. Anheuser-Busch faced backlash from various consumer groups.

As the company seeks to recover, it remains committed to brewing great beer for all consumers. Restructuring aims to ensure long-term viability and refocus on core strengths in a rapidly evolving beer industry landscape.