Coca-cola cuts jobs due to coronavirus outbreak
On Friday, Coca-Cola Co (KO.N) announced that it would cut its operating units and offer voluntary separation to its 4,000 employees in the United States as the world’s largest beverage maker suffers a decline in sales growth due to the coronavirus pandemic.
The American multinational beverage corporation stated that it would have nine operating units that would sit under four geographical segments. It includes Coca-Cola’s global ventures and bottling investment divisions.
“We need to allow the economy time to restructure… there are a lot of people who are going to lose their jobs and be impacted through no fault of their own… they need to be able to maintain a standard of living as a country we think is acceptable.” Coca-Cola’s Managing Director Alison Watkins said in an interview with the Financial Review.
According to the company, voluntary separation packages would also be offered to its employees located in Canada and Puerto Rico. However, it did not provide details on the total planned workforce reduction.
Coca-Cola said that it would incur about $350 Million to $550 Million in severance expenses.
Coca-Cola’s shares were down by 28% last month.