Coca-Cola Cuts 500 Jobs In Broad Restructuring Effort January 5, 2021
Coca-Cola is cutting jobs including 500 in metro Atlanta, Georgia. This translates into 2,200 jobs globally. This is as part of a major global restructuring, according to information obtained by the Atlanta Journal-Constitution.
Coca-Cola Workforce Significantly Reduced
Coca-Cola, the Atlanta-based soda company, reportedly announced last Thursday, that it was of those 2,200 jobs. In fact, 1,200 of them will be among the company’s U.S. workforce of 10,400 people. According to the Atlanta Business Chronicle, this news has come almost four months after the company had announced a massive business reorganization. This involves involuntary and employee separations.
Coco-Cola Enhanced Benefits Package for Employees
Generously, Coca-Cola offered in late August an enhanced benefits package. This was for about 4,000 employees who worked for corporate or Coca-Cola North America in the U.S., Canada, and Puerto Rico. Those were brought on or before September 1, 2017, by the Chronicle said. However, the company would not reveal the number of employees who took the severance package. This severance package cost Coca-Cola between approximately $350 million and $550 million.
Coca-Cola Major Organization to Increase Business
Part of a major organization gearing toward growing the business is the aim of Coca-Cola’s reduction, the AJC has reported. About half of its sales from public venues such as restaurants, movie theaters, and sports stadiums that is where the company gets half its sales. They have course suffered this year due to the ongoing COVID-19 pandemic. Condensing its U.S. business units from 17 to nine helps keep the focus on eliminating duplication of resources and scaling new products more quickly, the Chronicle reported.
Jobless Rate has Risen Significantly
A Thursday report from the Georgia Department of Labor shows the most current round of cuts is due to the state’s jobless rate which rose 1.2 percentage points to 5.7 percent in November. In fact, this is due to continued evidence of the economic hardship due to the ongoing COVID-19 pandemic. Therefore, Coca-Cola has reported financial improvements presently. This is according to the AJC. In comparable periods from last year, the revenues and operating income were still lower.
The beverage giant’s restructuring will continue into 2021.