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Coca-Cola To Retrench 2,200 Employees Over Reduced Sales

[PHOTO/ COURTESY]

Soft drink manufacturer Coca-Cola has announced plans to retrench over 2,200 employees globally as a result of reduced sales during the Covid-19 pandemic period.

According to reports by CNN, the company will retrench 1,200 employees in the US and 500 in Atlanta where it is headquartered.

The company directly employs around 10,400 people in the US.

Severance packages are expected to cost the company between $350 million (Ksh35 billion) and $550 million (Ksh55 billion).

Read: Supreme Court To Hear KRA-Coca-Cola Ksh5.6 Billion Dispute

Exits will entail voluntary and forced separations, according to reports.

The company also plans to reduce its number of operating units from 17 businesses in four regions to nine operating units in those areas.

Coca-cola’s profits for the third quarter shrunk by nine percent to $8.7 billion, attributed to reduced sales after several restaurants closed down due to Covid-19.

Coca-Cola said in October that it was canceling 200 brands, or half of its portfolio, including Odwalla, Zico and Tab.

As of December 2019, 86,2000 people worked for Coca-cola directly.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email francis@kahawatungu.com

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