As the company warned in August, Coca-Cola Co. last week began laying off 2,200 employees worldwide, most in the U.S., as part of a restructuring. The layoffs come apparently because a previously announced buyout offer fell short.
Coke offered a termination package to some 4,000 workers in North America before it would consider layoffs. The company did not say how many employees accepted the offer. But last week it began cutting 2,200 positions globally, about 1,200 positions in the U.S., according to the Atlanta's Business Chronicle. Coca-Cola expects the severance program to result in expenses of $350 million to $550 million.
Coca-Cola's total sales were $44 billion as recently as 2015, but they've dropped every year since – although 2019 showed a small uptick to $37 billion. The pandemic has been unkind to Coke: Every quarter this year has seen a decline, including a 28% drop in Q2.
James Quincey, CEO since 2017, and CFO John Murphy have begun a restructuring that includes the retirement of several brands, including Tab, Zico coconut water, Odwalla, Coca-Cola Life and Diet Coke Feisty Cherry, as well as regional offerings.
