Coca-Cola to lay off 2,200 workers

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By Ashish Mitra --
Saturday, 26 Dec, 2020

As part of a larger restructuring aimed at paring down its business units and brands, the Coca-Cola Company has decided to lay off 2,200 workers or 17 per cent of its global workforce.

The Atlanta-based company said that around half of the layoffs will occur in the US where Coke employs around 10,400 people. Incidentally, Coke had employed 86,200 people worldwide at the end of 2019.

The Coronavirus pandemic has hampered Coke's business as sales at places like stadiums and movie theaters took a hit due to the lockdowns. Its revenue fell 9 per cent to $8.7 billion in the July-September period. The downturn forced the company to accelerate a restructuring that was already underway.

"We've been challenging legacy ways of doing business and the pandemic helped us realise we could be bolder in our efforts," Coke Chairman and CEO James Quincey said during a meet to discuss the company’s earnings.

Coke is reducing its brands by half to 200. It shed multiple slow-selling brands this year including Tab, Zico coconut water, Diet Coke Fiesty Cherry and Odwalla juices.

The company said it will use the savings to invest in growing brands like Minute Maid and Simply juices and fund the launch of new products like Topo Chico Hard Seltzer, Coca-Cola Energy and Aha sparkling water.

Coca-Cola to lay off 2,200 workers. As part of a larger restructuring aimed at paring down its business units and brands, the Coca-Cola Company has decided to lay off 2,200 workers or 17 per cent of its global workforce.

The Atlanta-based company said that around half of the layoffs will occur in the US where Coke employs around 10,400 people. Incidentally, Coke had employed 86,200 people worldwide at the end of 2019.

The Coronavirus pandemic has hampered Coke's business  as sales at places like stadiums and movie theaters took a hit due to the lockdowns. Its revenue fell 9 per cent to $8.7 billion in the July-September period. The downturn forced the company to accelerate a restructuring that was already underway.

"We've been challenging legacy ways of doing business and the pandemic helped us realise we could be bolder in our efforts," Coke Chairman and CEO James Quincey said during a meet to discuss the company’s earnings.

Coke is reducing its brands by half to 200. It shed multiple slow-selling brands this year including Tab, Zico coconut water, Diet Coke Fiesty Cherry and Odwalla juices.

The company said it will use the savings to invest in growing brands like Minute Maid and Simply juices and fund the launch of new products like Topo Chico Hard Seltzer, Coca-Cola Energy and Aha sparkling water.