Coca Cola announces global job cuts

Coca-Cola is set to cut 1,800 jobs as part of a saving programme.

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By :  ,  Financial Analyst

Coca-Cola has announced a series of job cuts across its global operations in a bid to reduce costs.

In October, the drinks giant stated that it needed to save $3 billion (£1.9 billion) from its annual costs and warned that it would result in job cuts. The first announcement will see 1,800 workers being made redundant across its global operations. Coca-Cola's headquarters in Atlanta, US, will bear the brunt of the cuts but there will be reduction in its other offices.

The decision to embark on a cost-cutting programme came after the company, which owns brands such as Sprite, Powerade and Fanta, stated that it had missed profit targets due to falling sales. Coca-Cola noted that earnings between July and September 2014 had dropped 14 per cent and was compounded with slow revenue growth.

In an emailed statement to the BBC, a spokesperson for Coca-Cola said: "[We have begun] the process of informing associates in the United States and in some international locations about the impacts to their departments.

"We have identified 1,600 to 1,800 positions in Corporate, Coca-Cola North America and Coca-Cola International that will be eliminated in the coming months."

The latest restructuring programme is the first of its kind at Coca-Cola since it announced 5,000 job losses in 2000. A spokeswoman for the drinks manufacturer confirmed that there would be talks with employees affected by the cuts and they would receive "strong transition assistance" during this period.

In August, Coca-Cola announced its intention to tap into the energy drinks market by purchasing a stake in Monster Beverage. In a cash deal worth $2.15 billion, the company acquired a 16.7 per cent stake in the firm as it looked to move its growth away from the fizzy drinks sector and invest in different markets.

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