Atlanta-based Coca-Cola on Friday announced a major global workforce reorganization that will result in thousands of job cuts and employee buyouts in the United States and Canada.
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The beverage giant said in order to “minimize the impact” of structural changes, it would offer voluntary severance packages to 4,000 employees working in the continental United States, Canada and Puerto Rico who have been hired. on or before September 1, 2017.
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The company expects its overall severance package to cost between $ 350 million and $ 550 million.
Coke has more than 86,200 employees worldwide, including more than 10,000 in the United States.
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“We are on a multi-year journey to transform our organization,” President and CEO James Quincey said in a written statement. “The changes to our operating model will alter our marketing and drive growth and bring execution closer to customers and consumers while prioritizing a strong brand portfolio and disciplined innovation framework. As we implement these changes, we continue to evolve our organization, which will include significant changes in our workforce structure. “
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The company also announced that nine new divisions will replace 17 business units and focus on scaling up new products while eliminating duplication of resources.
Coke experienced one of its worst quarters in its 134-year history this spring as the COVID-19 crisis closed theaters, restaurants and sporting events. The company derives about half of its sales from public events.
Second-quarter revenue fell 28% to $ 7.2 billion and net income fell 32% to $ 1.8 billion from a year earlier.
Coke has over 500 beverage brands in over 200 countries and territories. Their portfolio includes Dasani, Minute Maid, SmartWater and Sprite.
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