Coca-Cola has announced plans to cut about 20 per cent of it corporate workforce, as the company battles a drop in sales due to falling demand for its sugary drinks.
The US firm said it will cut 1,200 jobs starting later this year as it increases its cost-cutting target by $800m and is now expecting to save $3.8bn by 2019.
This represents about a 22 per cent reduction of its 5,500 corporate staff or a 1 per cent reduction in its total workforce of 100,300 employees, according to figures by FactSet, cited by AP. Global sales of Coca-Cola’s fizzy drinks fell by one per cent for the first three months of 2017 as health-conscious consumers across the US and Europe are increasingly shying away from drinks with a high sugar content.
Coca-Cola said it expects full-year adjusted profits to drop by between 1 to 3 per cent, compared with a 1 to 4 per cent decline it had forecast in February.
The cost-cutting comes as drink and food manufacturers find themselves on a never-ending quest for more healthy ways to sweeten products, pressured by a consumer trend toward healthier products.
Wondering where all the unemployed staffs will fit…