Coronavirus Forces This 134-Yr Old Company To Fire 2200 Employees Globally; India Impacted?
The economic impact of coronavirus is yet to be calculated and measured, but one thing is clear: The pandemic is forcing old, traditional companies to resort to cost-cutting.
As a direct result of the coronavirus impact on the market, this 134-year old beverages company has decided to fire 2200 employees globally.
Will Indian employees get impacted?
Keep reading to find out more.
Coca Cola Is Firing 2200 Employees
134-year old Coca Cola, which is a market leader in beverages, has decided to fire 2,200 employees globally.
There are 86,000 employees in Coca Cola and this mass termination represent 2.5% of the workforce. Out of 86,000 employees, more than 10,000 are in US alone.
Out of 2200 employees getting fired, 1,200 are US based employees, and the rest 1,200 are located outside US.
Will Indian Employees Get Impacted?
In India, Coca Cola is responsible for around 1.5 lakh direct and indirect jobs. Around 25,000 employees in India are employed by Coca Cola under direct payroll.
It’s not yet clear as to how many employees in India will be fired, but as per some sources, the impact will be minimal.
The Reason For Coca Cola’s Mass Firing
Coronavirus is the trigger, which caused less sales, and less business for Coca Cola.
In a statement, Coca Cola said, “We are in the process of building an organizational structure that will address customers’ needs and behaviors. The pandemic was not a cause for these changes, but it has been a catalyst for the company to move faster.”
As per some reports, Coca Cola is not straight away firing employees, but employing other employee-separation strategies such as Voluntary Retirement.
While the company will spend upto $550 millon to handle these layoffs, they will be able to save the same amount every year.
Coca Cola has already reduced upto 40% of US workforce by offering them VRS.
We will keep you updated, as more details come in.