Cans produced for the Coca-Cola Co. beverage. they move along the production line.
Chris Ratcliffe | Bloomberg | Getty Images
Coca-Cola will cut nearly 2,200 jobs in its global workforce as part of a broader restructuring plan that was accelerated by the coronavirus pandemic.
In the United States, Coke will use layoffs and purchases to eliminate about 1,200 jobs, which account for approximately 12% of its national market workforce. The Wall Street Journal first reported the news.
At the end of 2019, the Atlanta-based company had 86,200 employees worldwide. But the pandemic hit its revenue and raised costs for the beverage giant. About half of their sales typically come from consumers who drink their drinks away from home. In the third quarter, its net sales fell 9%.
Coke has responded to the crisis by streamlining its plans to restructure its business and reduce its portfolio. It has stopped producing drinks like Tab and its Odwalla brand that are not selling well and do not present much growth opportunity. The company plans to build new operating units focused on the regional and local level that will work closely with five global marketing leadership teams, divided into categories.
Part of its reorganization includes job cuts. In August, Coke said it would offer 4,000 workers in the U.S., Canada and Puerto Rico voluntary redundancy packages.
In total, Coke expects to invest between $ 350 million and $ 550 million in layoff costs. Job losses do not include employees of their bottlers.
Coca-Cola shares, which have a market value of $ 230 billion, rose less than 1% in the afternoon trading. Shares have fallen 3% so far in 2020.