Coca-Cola is Cutting Down 2,200 Jobs Worldwide
The beverage company, Coca-Cola cuts down 2,200 jobs, worldwide as pandemic hurts sales, with more than half job losses in the US.
The beverage company, Coca-Cola is cutting down 2,200 jobs, worldwide as pandemic hurts sales, with more than half job losses in the US.
Coca-Cola said on Thursday it’s cutting down 2,200 jobs worldwide, or 17% of its global workforce, as part of a larger restructuring aimed at paring down its business units and brands.
The Atlanta-based company said around half of the layoffs will occur in the U.S, where Coke employs around 10,400 people. Coke employed 86,200 people worldwide at the end of 2019. It said the severance programs will cost between $350 million to $550 million.
The pandemic has hammered Coke’s business, as sales at places like stadiums and movie theaters dried up due to lockdowns. Revenue fell 9% to $8.7 billion between July and September. The downturn forced the company to accelerate a restructuring that was already underway.
“We’ve been challenging legacy ways of doing business, and the pandemic helped us realize we could be bolder in our efforts,” Coke CEO James Quincey said during an earnings call in October.
Coke is reducing its brands by half to 200. It shed multiple slow-selling brands this year, including Tab, Zico, Odwalla, and Diet Coke Feisty Cherry.
The company said it will use the savings to invest in growing brands like Minute Maid and Simply juices and fund the launch of new products like Topo Chico Hard Seltzer, Coca-Cola Energy, and Aha sparkling water.
Coke is also reducing its business segments from 17 to nine. The severance programs will cost between $350 million to $550 million, the company said.
The company began offering voluntary buyouts to employees in August. Coke wouldn’t disclose how many employees took those offers.
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