Coca-Cola is laying off 2,200 workers as part of a larger restructuring aimed at dismantling its business units and brands, the beverage giant said.
About 1,200 layoffs will take place in the United States, he said, including about 500 in Atlanta, where the company is located.
Coca-Cola employed 86,200 people worldwide at the end of 2019, including 10,400 in the United States.
The coronavirus pandemic hit the Coke business because sales in places like stadiums and cinemas have dried up due to the blockade. Its revenues fell 9% from $ 8.7 billion the previous year between July and September.
The recession has forced the company to accelerate a restructuring that was already underway.
“We’ve challenged the old ways of doing business, and the pandemic has helped us realize that we can be bolder in our efforts,” James Quincey, president and CEO of Coke, said during an October earnings call.
Coca-Cola halves its brands to 200. This year it released several slow-selling brands, including Tab, Zico, Odwalla and Diet Coke Feisty Cherry.
The company said it will use the savings to invest in growing brands such as Minute Maid and Simply and finance the launch of new products such as Topo Chico Hard Seltzer, Coca-Cola Energy and Aha sparkling water.
Coca-Cola also reduces its business segments from 17 to nine.
Compensation programs will cost between $ 350 million and $ 550 million, the company said.
The company began offering voluntary shopping to employees in August. Coca-Cola would not disclose how many employees took these offers.
The layoffs will have no impact on Coke bottlers, who are largely independent. Including bottlers, the company has over 700,000 employees worldwide.