P. Sarojini
New York, USA (CWBN)_ In an attempt to reorganize the empire after the pandemic, Coca-Cola announced on Thursday it will slash 2,200 jobs as it plans for an upgraded post-pandemic market in 2021 after the sales hit of this year.
According to the statement from a company spokesman, the latest decision of employee reduction by the major US company in the midst of the pandemic will affect about 2.6% of Coca-Cola’s global labor force and will cut 1,200 US jobs as well. The spokesman added that a voluntary separation scheme was set up by the soda company, but some level of involuntary reductions would also be required.
The spokesman further explained that pandemic is not the reason behind this decision. He said, “Our transformational work was well underway prior to the pandemic. The pandemic was not a cause for these changes, but it has been a catalyst for the company to move faster.”
The decision follows Coca-Cola’s announcement in August on plans to well-organize activities, shrinking from 17 to 9 units as it rearranges employees in an attempt to advertise its most favorable brands. The firm estimates that costs linked to global severance schemes would be $350 million to $550 million. After a nine percent fall in sales to $8.7 billion, Coca-Cola posted a 33 percent decrease in third-quarter income to $1.7 billion.
In recent weeks, other major US corporations such as insurer Allstate, oil giant ExxonMobil, American Airlines and United Airlines have also reported substantial job cuts.
