Coca-Cola (NYSE:KO) job cuts are on the way as the company prepares its restructuring plan.
Here’s what to know about the job cuts and restructuring plan Coca-Cola is pursuing.
- Starting off, the company notes it will be streamlining its business with nine operation facilities.
- This will have the company reducing its total operating units from the current 17.
- To go along with this, its shifting focus to new efforts, such as its Beverages for Life strategy.
- With these types of changes going into effect, Coca-Cola says that job cuts are on the way.
- That begins with it focusing on voluntary reductions in its workforce.
- This includes it offering 4,000 separation packages to eligible employees.
- These packages are for workers in the United States, Canada and Puerto Rico who were hired on or before Sept. 1, 2017.
- It will also be offering a similar package to international employees in many different countries.
- KO notes that it expects this offering to reduce the number of involuntary job cuts it has to make.
- However, the company still says that it will have to involuntarily layoff some employees as part of the restructuring plan.
- The company’s separation package program launches today but it doesn’t say when the involuntary job cuts will take place.
- In total, Coca-Cola is expecting the job cuts to cost it between $350 million to $550 million in severance expenses.
KO stock was up 2.8% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.