Coca-Cola joins other big companies in the U.S. who have decided to cut down on labour cost by laying off workers in thousands. This comes as the effect of coronavirus crisis hit corporate sector while the former offers “voluntary deals across its businesses” with the promise of slashing 50% of its operating units.
Coca Cola has offered “voluntary redundancy” to four thousand workers across the U.S, Canada and Puerto Rico, while it plans on coming up with “similar deals in other markets” whereby indicating “other layoffs” waiting in the pipeline. According to Coca Cola:
“The voluntary program is expected to reduce the number of involuntary separations.”
While, it also added that “the global severance programs would incur expenses of about $350 million to $550 million”, reported Reuters.
The company took a beating in its sales as “bars, restaurants and cinemas” have been closed due to the ongoing pandemic while these happen to be the places where the company makes heavy sale. Furthermore, it has plans of establishing “nine operating units” across “four geographical segments” besides undertaking “global ventures and bottling investments divisions”, as oppose to its current business model of seventeen units.
The step to slash jobs only adds to the growing “number of Americans filing new claims for unemployment benefits” which had already neared “around 1 million last week”, while the government confirmed that the economy took the “sharpest contraction in at least 73 years” in Q2.
According to Reuters:
“Coca-Cola last month reported a 28% slump in sales in the “most challenging” quarter of the year due to coronavirus-triggered closures of restaurants, theaters and sports venues”.
References:
reuters.com
Coca Cola has offered “voluntary redundancy” to four thousand workers across the U.S, Canada and Puerto Rico, while it plans on coming up with “similar deals in other markets” whereby indicating “other layoffs” waiting in the pipeline. According to Coca Cola:
“The voluntary program is expected to reduce the number of involuntary separations.”
While, it also added that “the global severance programs would incur expenses of about $350 million to $550 million”, reported Reuters.
The company took a beating in its sales as “bars, restaurants and cinemas” have been closed due to the ongoing pandemic while these happen to be the places where the company makes heavy sale. Furthermore, it has plans of establishing “nine operating units” across “four geographical segments” besides undertaking “global ventures and bottling investments divisions”, as oppose to its current business model of seventeen units.
The step to slash jobs only adds to the growing “number of Americans filing new claims for unemployment benefits” which had already neared “around 1 million last week”, while the government confirmed that the economy took the “sharpest contraction in at least 73 years” in Q2.
According to Reuters:
“Coca-Cola last month reported a 28% slump in sales in the “most challenging” quarter of the year due to coronavirus-triggered closures of restaurants, theaters and sports venues”.
References:
reuters.com
