Coca-Cola to eliminate up to 1800 jobs under its cost-cuting drive

The Coca-Cola company(TCCC) plans to cut up to 1,800 jobs across the globe over the coming weeks, as part of a $3 billion cost-cutting drive. Redundancies will be significant at the company's headquarters in Atlanta and global regional offices  where more than 10 percent of corporate staff could lose their jobs, but bottling and distribution divisions will be largely unaffected for now. TCCC has a global work force of more than 130,000 and the company employs nearly 8,900 in Atlanta.
The company has pledged to invest US$5bn in India by 2020, however its India unit acknowledged that the latest round of “streamlining” will hit global operations “including in India”. Coca-Cola India is expected to lay off 4%-5% of its workforce. The job cuts will not impact India bottling arm Hindustan Coca-Cola Beverages, which employs over 12,000 people. China, too, will lose staff, according to the China Daily, despite Coca-Cola having earmarked $8bn for investment in the country in 2012.

A Coca-Cola spokesperson told that investment plans for India and China remain unchanged. The spokesperson also confirmed that job cuts would affect global staff, but said the company is not providing a breakdown of which markets will be affected. 

The company expanded its cost cutting measure to $3 billion in annualized savings by 2019, including plans to refranchise the majority of its North American bottling territories by the end of 2017.

Coca-Cola Co. will release its 2014 fourth-quarter results and annual report on Feb. 17. Analysts expect quarterly net profit to decline 8 percent, to $1.89 billion, on 2 percent lower revenue of $10.8 billion. Quarterly earnings per share minus one-time charges are expected to be 43 cents, down from 46 cents in the previous year.

Coke is also introducing stricter budgeting such as asking executives to swap limousines for taxis, and has canceled its Christmas party for Wall Street analysts.


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