Coca-Cola To Cut Thousands Of Jobs As Coronavirus Hits Sales
Coca-Cola Co has joined a list of big US companies that are laying off thousands of workers in response to the coronavirus crisis, offering voluntary deals across its businesses and promising to halve its number of operating units.
The company is offering voluntary redundancy to 4,000 workers in the United States, Canada and Puerto Rico and will offer similar deals in other markets, it said in a statement, while also signaling other layoffs are likely to follow.
"The voluntary program is expected to reduce the number of involuntary separations," the world's largest beverage maker said, adding that the global severance programmes will incur expenses of approximately $350 million to $550 million.
The company, which is battling a hit to sales from closures of bars, restaurants and cinemas where it normally sells heavily, said that it will have nine operating units that will sit under four geographical segments, along with global ventures and bottling investments divisions.
Its current model includes 17 business units.
"Most Challenging" Quarter Of The Year
Last month, Coca-Cola reported a 28% slump in sales in the "most challenging" quarter of the year due to coronavirus-triggered closures of restaurants, theaters and sports venues.