Coca Cola will reduce 2,200 employees from its global workforce as part of previously announced restructuring plans that have been accelerated by the coronavirus pandemic.
“We challenged the old ways of doing business and the pandemic helped us realize that we could be bolder in our efforts,” James Quincey, president and CEO of Coke, said during an October earnings call. .
COCA-COLA SAYS GOODBYE TO HALF OF DRINK BRANDS
A company spokesman told FOX Business that job cuts will come through a combination of voluntary acquisitions and involuntary layoffs.
The restructuring will impact about 1,200 roles in the United States, with about 500 of the cuts coming from the Atlanta subway. The move will cost between $ 350 million and $ 550 million.
The spokesman did not specify how many employees will be affected in the individual business units and did not disclose the number of employees who accepted the company’s voluntary severance program. In August, Coca Cola offered voluntary separation packages to approximately 4,000 employees in the United States and Canda.
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The move comes after Coca-Cola said in October that it would halve its brands to 200. This year, it is dropping several slow-selling brands, including Tab, Zico Coconut Water, Diet Coke Fiesty Cherry and Odwalla juices.
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.
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The restructuring will not have an impact on Coca-Cola’s bottling operations, which are largely independent. The total number of the company at the end of 2019 was 86,200.
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The Associated Press contributed to this report