Coca Cola will cut 2,200 jobs globally, including 1,200 in the United States, the beverage maker said on Thursday, reported Reuters. The move is part of the company’s business restructuring strategy in the aftermath of the coronavirus pandemic. The downsizing will impact 2.6% of Coca Cola’s total workforce, according .
In August, the company had offered voluntary separation packages to 4,000 workers in the United States, Canada and Puerto Rico, as its sales took a hit amid the crisis. The company established a voluntary separation program but “some level of involuntary reductions” also will be needed, AFP quoted a Coca Cola spokesperson as saying.
The company, however, said it will not disclose the number of employees who have accepted the package, according to Reuters. It also did not give details about the timeline for the job cuts.
“Our transformational work was well underway prior to the pandemic,” he said. “The pandemic was not a cause for these changes, but it has been a catalyst for the company to move faster.”
The company also said it expects $350 million (over Rs 25,736 crore to $550 million (over Rs 40,444 crore in expenses tied to global severance programs. It reported a 33% drop in third-quarter profits to $1.7 billion (over Rs 1.25 lakh crore following a 9% decline in revenues to $8.7 billion (over Rs 6.39 lakh crore.