Workforce rehaul at Coca-Cola, 2,200 to be laid off globally

American beverage company’s workforce will be reduced by about 2.5 per cent, which will save at least $350 million for the Company ever year

0
1557

Coca-Cola Company, the American multinational beverage firm, is set to reduce its global workforce by 2,200. In the US itself, it will let go of 1,200 employees, as part of a major restructuring exercise. At the start of 2020, Coke had over 86,000 employees, of which more than 10,000 were based in the US. With this round of job cuts, the Company expects to save $350 to $550 million every year.

The Company has suffered a dip in business with stadiums, bars and movie halls remaining out of operation during the pandemic. However, it maintains that it has resorted to this major overhaul not because of the pandemic alone, but also because it has been trying to align with the changing tastes and behaviours of the consumers. The COVID-19 pandemic has only speeded up this process.

The workforce will be reduced through layoffs and voluntary buyouts. The restructuring will also result in costs of about $350 million to $550 million.

Earlier this year, in August, Coca-Cola had offered its employees in North America (Canada and the US) early-departure packages. About 40 per cent of the employees were eligible for the package at the time. It had also revealed then that involuntary cuts were around the corner.

Comment on the Article

Please enter your comment!
Please enter your name here

12 − 5 =