Coca-Cola to cut 2,200 jobs globally in restructuring plan

Coca-Cola will cut around 2,200 jobs from its global workforce as part of a broader restructuring plan that has been accelerated by the coronavirus pandemic.

In the United States, Coke will use layoffs and buyouts to eliminate about 1,200 jobs, which represents about 12% of its home market workforce. The news was first reported by The Wall Street Journal.

At the end of 2019, the Atlanta-based company had 86,200 employees worldwide. But the pandemic has weighed on its revenue and increased costs for the beverage giant. About half of its sales typically come from consumers who drink its drinks away from home. In the third quarter, its net sales fell 9%.

Coke responded to the crisis by accelerating its plans to restructure its activities and reduce its portfolio. It has stopped producing drinks such as Tab and its Odwalla brand which do not sell well and do not present many opportunities for growth. The company plans to build new business units focused on regional and local levels that will work closely with five global marketing leadership teams, broken down by category.

Part of its reorganization includes job cuts. In August, Coke announced it would offer 4,000 workers voluntary layoff programs in the United States, Canada and Puerto Rico.

In total, Coke plans to spend between $ 350 million and $ 550 million on severance packages. The job losses do not include the employees of its bottlers.

Shares of Coca-Cola, which has a market value of $ 230 billion, rose less than 1% in the afternoon. The stock is down 3% so far in 2020.