Coca-Cola To Cut 2,200 Jobs Worldwide As Part Of Restructuring Plan

Coca-Cola is set to cut 2,200 jobs, including 1,200 in the United States, as it faces declining sales during the pandemic. About 86,2000 people worked for Coca-Cola worldwide at the close of last year.

The reductions include voluntary and involuntary separations, and the severance packages are expected to cost the company between $350 million and $550 million. It also said then that it plans to reduce its number of operating units from 17 businesses in four regions to nine operating units in those areas. Coca-Cola did not share on Thursday which specific units would be affected.

Coca-Cola’s net revenues declined by 9% to $8.7 billion. Organic revenues (non-GAAP) declined by 6%. Revenue performance included a 4% decline in concentrate sales and a 3% decline in price/mix.

The company reported improvement in trends versus the prior quarter, with revenue declines versus the prior year driven by ongoing pressure in away-from-home channels partially offset by sustained growth in at-home channels.

“Throughout this year’s crisis, our system has remained focused on its beverages for life strategy. We are accelerating our transformation that was already underway, shaping our company to recover faster than the broader economic recovery,” said James Quincey, chairman and CEO of The Coca-Cola Company. “While many challenges still lie ahead, our progress in the quarter gives me confidence we are on the right path.”

As it looks ahead, the company is focusing on its most popular segments, including its namesake line of beverages like Coke and Coke Zero. Coca-Cola said in October that it was cancelling 200 brands or half of its portfolio. Earlier this year, it announced the discontinuation of notable, if unfashionable, brands Odwalla, Zico and Tab.