Carlsberg, the Danish brewer that has long been struggling in Russia, said it would book $1.4 billion in impairment and restructuring costs and slash management staff by 15% in a bid to return to growth.
Most of the 10 billion Danish crown ($1.44 billion) worth of the charges were booked in the third quarter, the company said.
As a result it said it now expects its operating profit to decline by high single-digit percentages, compared to the growth it expected before.
Carlsberg has long faced problems in Russia and Ukraine, from where it derives over a quarter of its operating profit, but the company booked charges and said it would restructure its Chinese and British businesses also.
It said charges relating to Russia would amount to 5 billion Danish crowns, while those relating to the Chinese business would be 4 billion crowns and to the UK business would be 600m crowns.
In the fourth quarter, around 1 to 1.5 billion crowns' worth of charges will be booked related to the impairments and restructuring, the company said.
"Acknowledging the fact that the profit development of recent years has not been satisfactory, we are taking further steps to prepare the Carlsberg Group for the future," chief executive Cees 't Hart said in a statement.
Carlsberg reported a third-quarter operating profit before special items at 3.47 billion Danish crowns, above a forecast of a 3.19 billion crowns seen in a Reuters poll.
But the company made a loss of 4.6 billion Danish crowns before tax, after the charges had been booked in the quarter, compared to profits of 3 billion crowns a year ago.
