Disappointing sales have prompted Coca-Cola to cut somewhere between 1,600 and 1,800 jobs. The majority of redundancies will be at its Atlanta main office, although foreign branches (including one Belgian plant) will not be spared.
Coca-Cola cuts costs
The lay-offs are part of CEO Muhtar Kent's plan to save up to 3 billion dollars by 2019, a number he had already forecast when Coca-Cola's third quarter results were below expectations. Its turnover has dropped to 11.98 billion dollars (10.1 billion euro), where it had managed 12.03 billion dollars (10.2 billion euro) last year.
The company's net profit dropped from 2.4 billion dollars (2 billion euro) to 2.1 billion euro (1.8 billion euro). An increased focus on healthy food in the United States has impacted profits quite a bit. Most of the terminated jobs are at Coca-Cola's main office in Atlanta, but several foreign offices will also be hit. Currently,Coca-Cola employs 130,600 people worldwide.
Chaudfontaine logistics unit dismantled
The company's focus on more efficiency will also impact Belgian Coca-Cola units: the logistics unit in Chaudfontaine, which is used to bottle the Chaudfontaine water, will be dismantled and moved to its distribution centers in Charleroi, Heppignies and Hasselt. Five people may lose their jobs according to labour unions, but everyone else can move to the aforementioned locations.