The Atlanta-based soda company announced Thursday that of those 2,200 jobs, 1,200 of them will be among the company's U.S. workforce of 10,400 people. This news comes almost four months after Coca-Cola announced a sweeping business reorganization, which included voluntary and involuntary employee separations, according to the Atlanta Business Chronicle.
In late August, Coca-Cola offered an enhanced benefits package to about 4,000 employees who worked for corporate or Coca-Cola North America in the U.S., Canada and Puerto Rico who were hired on or before Sept. 1, 2017, the Chronicle reported. The company would not disclose the number of employees who accepted the severance package, which is estimated to cost Coca-Cola between $350 million and $550 million.
Coca-Cola's reductions are part of a major reorganization aimed at growing the business, the AJC reported. The company receives about half of its sales from public venues such as restaurants, movie theaters and sports stadiums, which all suffered this year due to the ongoing coronavirus pandemic. Coca-Cola also plans to condense its U.S. business units from 17 to nine to help focus on eliminating duplication of resources and scaling new products more quickly, the Chronicle reported.
This latest round of cuts comes as a Thursday report from the Georgia Department of Labor shows the state's jobless rate rose 1.2 percentage points to 5.7 percent in November — continued evidence of the economic hardship due to the ongoing coronavirus pandemic. Coca-Cola reported financial improvements recently, according to the AJC, but its revenues and operating income were still lower than in comparable periods last year.
The beverage giant's restructuring will continue into 2021.