The Coca-Cola group announced on Thursday the cut of 2,200 jobs globally, part of a restructuring plan of the company that has accelerated with the coronavirus pandemic.
Most of the positions will be eliminated in the US, where the company will lay off or offer severance pay to some 1,200 people, which is equivalent to 12% of its workforce in the US market.
At the end of 2019, the Atlanta-based company had about 86,200 employees around the world, but the coronavirus pandemic affected its revenues and raised the costs of the soft drink giant, since about half of its sales come from consumption outside the residence.
Sales, therefore, fell 9% in the third quarter of 2020, something that Coca-Cola has responded to by accelerating its restructuring plans and reducing its product line.
Thus, in October they announced the cancellation of 200 brands that they consider do not sell enough units and have no opportunity for growth, after at the beginning of the year they already revealed the end of popular brands such as Odwalla or Tab.
As part of this reorganization, the group already said last August that it would offer voluntary resignations to 4,000 employees in the US, Canada and Puerto Rico.
In total, Coca-Cola expects to spend $ 350 to $ 550 million in severance pay for its workforce cuts, which does not include employees at its bottlers.
With the restructuring, Coca-Cola will form new operating units that will work regionally and locally, in coordination with five global leadership teams, divided by category.
Shares of Coca-Cola, which has a market value of 230,000 million dollars, were barely affected by the news, and rose 0.39% on Wall Street throughout the day, although so far 2020 is down more than 3.7%. EFE