Sector News

Coca-Cola Cutting up to 1,800 Jobs

January 9, 2015
Food & Drink
(Associated Press) – Coca-Cola says it will cut between 1,600 and 1,800 jobs in coming months to trim costs.
 
The world’s biggest beverage maker says it began notifying workers in the U.S. and some international locations Thursday. It said job types are across all parts of its business and include about 500 cuts at its Atlanta headquarters.
 
The company, which makes Sprite, Powerade, Vitaminwater and other drinks, has about 130,600 employees around the world, according to FactSet.
 
In an emailed statement Thursday, Coca-Cola said it will “continuously look for ways to streamline our business,” suggesting additional cuts could be announced later.
 
Coca-Cola Co. and rival PepsiCo Inc. have been looking for ways to cut costs as their soda businesses have flagged in North America. In October, Coca-Cola said it planned to slash costs by $3 billion a year through a variety of measures. It said the savings would be used to help fund the stepped-up marketing it believes is needed to drive up beverage sales. The announcement came as the company reported disappointing revenue for its third quarter, with global beverage volume up just 1 percent.
 
In addition to the proliferation of alternatives like flavored water and energy drinks, Coke and Pepsi are trying to overcome perceptions that soda makes people fat and health concerns about the artificial sweeteners in diet sodas. Soda consumption in the U.S. has been declining for years, with public health officials calling for special taxes and warning labels to discourage people from drinking it.
 
In its statement Thursday, Coca-Cola said it does not “take decisions about job impacts lightly.”
 
“We have committed that we will ensure fair, equitable and compassionate treatment of our people throughout this process,” the statement said.
 
The company said last month it expects earnings growth of 4 percent to 5 percent for 2014, which is short of its long-term target. Coca-Cola said it doesn’t expect earnings growth for this year to be much different.
 
Coca-Cola’s shares rose 30 cents to $43.29 in midday trading.

comments closed

Related News

October 17, 2021

France to ban plastic packaging for fruit and vegetables

Food & Drink

The government has published a list of around 30 fruits and vegetables that will be subject to the plastic packaging ban coming into effect on 1 January 2022. The list includes courgettes, aubergines and cucumbers, as well as apples, oranges and pears.

October 17, 2021

Kraft Heinz unveils plans for a circular PET ketchup bottle

Food & Drink

Kraft Heinz has detailed plans to release a circular PET tomato ketchup bottle by 2022 in its latest Environmental Social Governance report. The company has made progress towards its aim of using 100% recyclable, reusable or compostable packaging by 2025.

October 17, 2021

Beverages category fizzes with AI-generated soda, hemp-based gin, “green” cola & coca leaf infusions

Food & Drink

The drinks category is brimming with trend-driven launches including flavorful, energizing and better-for-you beverages. FoodIngredientsFirst speaks to disruptive fizzy beverage brands, whose offerings include a classic cola recipe reimagined with a clean label twist, as well as AI-generated flavor synergies.

Send this to a friend