Coca Cola will cut 2,200 employees from its global workforce as part of previously announced restructuring plans that have been accelerated by the coronavirus pandemic.
“We have challenged traditional ways of doing business and the pandemic has helped us realize that we could be bolder in our efforts,” said James Quincey, Coke CEO, during a call for results in October.
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A spokesperson for the company told FOX Business the job cuts will come through a combination of voluntary buyouts and involuntary layoffs.
The restructuring will impact approximately 1,200 positions in the United States, of which approximately 500 cuts will come from the Atlanta metro. The move will cost between $ 350 million and $ 550 million.
The spokesperson did not specify how many employees would be affected in individual business units and did not disclose the number of employees who accepted the company’s voluntary departure program. In August, Coca Cola offered voluntary severance packages to approximately 4,000 employees in the United States and Canada.
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The move comes after Coke said in October that it would cut its brands in half to 200. It has dropped several low-selling brands this year, including Tab, Zico coconut water, Diet Coke Fiesty Cherry and juices. ‘Odwalla.
The company said it will use the savings to invest in growing brands like Minute Maid and Simply Juices and fund the launch of new products like Topo Chico Hard Seltzer, Coca-Cola Energy and Sparkling Aha. Coke is also reducing its business segments from 17 to 9.
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The restructuring will not affect Coke’s bottling operations, which are mostly independent. The company’s total workforce worldwide at the end of 2019 was 86,200 people.
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The Associated Press contributed to this report