The Strategist

Coca-Cola will downsize 4,000 employess within operational restructuring

08/31/2020 - 03:21

Beverage maker Coca-Cola has announced a reorganization of operations that will cut about 4,000 jobs. The cuts will primarily affect the United States, Canada and Puerto Rico.

The company's business will be divided into nine new divisions within four geographic segments, compare to 17 current divisions. As a result, the company hopes to streamline operations, eliminate duplication and achieve faster scaling of new products, according to the company’s press release.

Coca-Cola also intends to optimize its product portfolio, focusing on the development of the five main categories with the best potential in terms of consumer demand - Coca-Cola itself, sodas with various flavors, water, sports drinks, coffee and tea, as well as juices and milk, including vegetable milk, and "emerging categories".

The company is creating a dedicated platform that will provide support functions for operations divisions, as well as take over data, consumer analytics and e-commerce operations.

“We have come a long way towards transformation,” said James Quincey, Chairman and CEO of Coca-Cola. “Implementation of our plans will lead to changes in the organization, including significant changes in the personnel structure.”

The company plans to reallocate resources, as well as employees, which will entail both voluntary and involuntary dismissals. The voluntary dismissal program provides an opportunity for compensation.

At first, the restructuring will affect 4,000 employees, then the program will be launched in many other countries.

Coca-Cola's global downsizing expenses will range from $ 350 million to $ 550 million.