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Coca-Cola plans to cut 1200 jobs as sales decline in Q1

Published 26 April 2017

Softdrink giant Coca-Cola is planning to cut as many as 1200 jobs later this year as part of a cost-cutting strategy.

The company's net revenues declined 11% to $9.1bn for the first quarter of 2017, compared to $10.28bn for the same period in 2016.

Sales declined, especially in the North America and in Europe as customers are now vary of sugar-filled softdrinks.

Net income fell 20.3% to $1.18bn, or about $0.27 per share, from $1.48bn, or $0.34 per share, reported in in the first quarter of 2016.

Coco-Cola plans to start the job cuts during the second half of this year and continue till 2018.

The company intends to offload its less-profitable bottling business to reduce expenses. However, refranchising costs are reported to be higher than expected.

Coca-Cola plans to save as much as $800m by 2019 and at least $3.8bn in the next six years. It plants to re-invest at least half of the savings back in the company. However, no final plan has surfaced as yet.

This is claimed to be the eighth consecutive time the company saw decline in revenue. Recently its expenses increased significantly as it refranchised its bottling operations and has also been facing unfavourable conditions in the challenging economies of Latin American countries.

Image: Coca-Cola plans to cut 1200 jobs in the second half of 2017. Photo: Courtesy of The Coca-Cola Company.