Coca-Cola has decided to lay off around 2,200 workers as part of a larger restructuring. The company takes this decision at a time when it is scraping several of its brands. The Atlanta-based company said that nearly 17 percent of the workforce will be impacted because of the decision of the job cut. Out of 2,200 job cuts, half will be done in the United States. Coke has around 10,400 employees in the USA and has around 86,200 people worldwide at the end of last. The COVID-19 pandemic has hit the company hard and it has decided to scrap several of its brands.
The pandemic almost put a brake on Coke’s business and sales at some important places like movie theatres and stadiums dried up because of COVID-19 induced lockdown. The company saw revenue falling by around 9 percent in the July-September period and it reached USD 87 billion. The company was already going through a restructuring process and the downturn forced it to accelerate the process. James Quincey, chairman, and CEO of Coca Cola said that the pandemic helped the company to realize that it could be bolder in its efforts.
Because of this downturn, the company took some bold decisions including reducing its brands by half to 200. Some of the slow-selling brands like Zico coconut water, Tab, Odwalla juices, Diet Coke Fiesty Cherry were discontinued. The company said that it will use the saving to grow brands that are doing well and also fund the launch of new products. The company has also decided to reduce its business segment to nine from the existing 17. However, the severance program is going to cost the company a lot of money. The expected cost will be around USD 350 million to USD 550 million. It even started giving options of voluntary buyouts in August. But the company has refused to share the number of employees who opted for it.