Coca-Cola plans a massive restructuring that will include reducing its workforce and paring its operating divisions.
The company will replace 17 existing business units with nine new ones, hoping to increase speed to market and reduce duplication of resources. The new units will include sodas; sparkling flavors; sports drinks, coffee, and tea; and nutrition, juice and milk, among others.
Coca-Cola will offer voluntary layoff packages to about 4,000 employees first, then terminate employment as needed.
The company has been hit hard by the pandemic, with revenue for the most recent quarter down 28% from last year and earnings down 32%. Much of this is attributable to the drop in foodservice and fountain drinks, where it does a higher proportion of business than its chief rival PepsiCo.
