As Coco-Cola faces declining beverages sale in the wake of the COVID-19 pandemic, it announced on August 28 of its plans to cut thousands of jobs and reduce the number of business units.
Coca-Cola plans to offer a ‘voluntary separation program’ buyout to 4,000 employees in the United States, Canada, and Puerto Rico.
Read on to find out more…
Coco-Cola To Downsize Manufacturing Units and Workforce All Over The World!
After the above-mentioned three countries, Coco-Cola then plans to offer a similar voluntary program in other countries.
The company said that the number of people who take the buyout will reduce the number of involuntary layoffs.
According to CNN, in its Q2 which ended on June 26, Coca-Cola saw a slump in its sales as it dropped by 28% to 7.2 billion with the closure of restaurants, sports complexes, theaters, and more public places.
As of December 31, 2019, Coca-Cola had 86,200 employees of which about 10,100 were located in the United States, the company said.
However, the company did not specify how many jobs could be lost in total, although, it did say that the global severance expenses could range from $350 million to $550 million.
The company also said it will downsize its 17 business units operating in 4 geographical segments to 9, operating in the same geographical segments.
Hindustan Coca-Cola Beverages Pvt. Ltd (HCCB), has 18 bottling plants in India, according to a report by ET. Including its external bottling partners, Coca-Cola has over 55 manufacturing units in India.
It will be keen to observe how Coca-Cola responds to its business decline in India!
Future Growth Plans of Coco-Cola!
The Coca-Cola Company offers over 500 brands in more than 200 countries and territories.
Coco-Cola is focusing on its 5 most popular categories at a global scale that include its main Coca-Cola segment and products like sports drinks, coffees, and teas. It also plans to expand in emerging brands such as sparkling water and plant-based drinks.
On the other hand, the company has decided to discontinue the smaller brands that haven’t worked aka ‘zombie brands’ or those that are not growing. For instance, in July, the company discontinued its Odwalla smoothie brand.