Coca-Cola to cut 2,200 jobs

Move part of restructuring efforts to prepare for post pandemic market

Coca-Cola said on Thursday it will cut 2,200 jobs as part of a restructuring as it prepares for a better post-pandemic market in 2021 following this year’s sales hit.

The downsizing, the latest by a large US company amid the pandemic, will impact about 2.6% of Coca-Cola’s global workforce and will eliminate 1,200 US jobs, a company spokesman said.

The soda giant established a voluntary separation programme but “some level of involuntary reductions” also will be needed, the spokesman said.

“Our transformational work was well under way prior to the pandemic,” he said.

“The pandemic was not a cause for these changes, but it has been a catalyst for the company to move faster.”

The move follows CocaCola’s August announcement of plans to streamline operations, slimming down to nine units from 17 as it shuffles staff in an effort to promote its most promising brands.

The company expects $350 million to $550 million in expenses tied to global severance programmes. Coca-Cola reported a 33% drop in third-quarter profits to $1.7 billion following a 9% decline in revenues to $8.7 billion.

Other large US companies also have announced sizable job cuts in recent weeks including insurer Allstate, oil giant ExxonMobil, American Airlines and United Airlines.