Coca Cola is offering voluntary deals to approximately 4000 workers in the US, Canada and Puerto Rico as part of its restructuring program in response to the Coronavirus’ effect on the business. The beverage company will roll out similar measures in other markets, aiming to “reduce involuntary separations.”
The voluntary layoffs will account for almost 35% for the company’s 10,800 employees in the US, Canada, and Puerto Rico.
Global severance programs will cost the company between $350 million and $550 million.
CNBC reports that the move follows lower sales, as measures to control the pandemic closed down restaurants, cinemas and bars. Second-quarter earnings for the company fell by 33%, recording the company’s largest decline in revenue in the past 30 years.
The beverage manufacturer will also cut the number of business units to 9, down from 17 globally under four geographies, eliminating duplicate resources and focusing on launching new products faster.
Coca Cola says the plan to maintain a leaner model will set the company up for better growth. The company will focus on larger and more popular brands, leaving “ghost” brands behind.
Nevertheless, the changes in staff will not affect its global ventures and bottling investment divisions.
