Sales at Coca-Cola company has continued to fizzle and the company has announced to cut 1,200 jobs to try and get back on track.
The company made this known in its earnings report Tuesday that the layoffs, which will begin in the second half of this year, are part of a broader cost-cutting plan aimed at saving $800 million.
The layoffs are a relatively small fraction of the company’s overall headcount.
Recall that in 2015, Coke (KO) announced it will eliminate 1,600 to 1,800 jobs around the globe as part of a major reorganisation over the coming months aimed at saving billions of dollars during the next five years.
As at 2015, Coke employs about 130,600 people around the world, it not employs about 100,000 people worldwide.
According to CNNMoney Incoming CEO James Quincey said the moves are being made to make Coke more agile and lean. The company is also in the process of refranchising some of its bottling operations in North America to save money.
Quincey, currently Coke’s chief operating officer, will take over as CEO on May 1. He is succeeding long-time CEO Muhtar Kent, who will remain at Coke as its chairman.
Coke has struggled over the past few years as consumer tastes have shifted away from sugary drinks. Even Coke’s diet brands are in decline due to health risks associated with artificial sweeteners.
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