Coca-Cola said it plans to offer buyouts to approximately 4,000 employees, or 37% of its North American workforce, as part of a larger restructuring aimed at streamlining its beverage business.
In a statement Friday, Coca-Cola said the reorganization would result in reallocating jobs and resources, including «voluntary and involuntary reductions in employees.»
The company said it will offer a «separation package» to eligible employees that includes enhanced benefits.
The changes are part of a larger plan by Coca-Cola to consolidate its business and make it more nimble and connected, the company said.
As sales of soda decline, Coca-Cola and other companies in the beverage business have branched out to offer other products including water and sports drinks.
Last year, Coca-Cola debuted its own brand of sparkling water, named AHA, to compete with popular brands including LaCroix.
«The changes in our operating model will shift our marketing to drive more growth and put execution closer to customers and consumers while prioritizing a portfolio of strong brands and a disciplined innovation framework,» said Coca-Cola chairman and CEO James Quincey in a statement. «As we implement these changes, we’re continuing to evolve our organization, which will include significant changes in the structure of our workforce.»
The Coca-Cola Company employs about 86,000 people globally, including 10,800 in the U.S., Canada and Puerto Rico. Including its bottling partners, the company employs more than 700,000 people.
The company said the voluntary programs, which they expect will reduce the number of layoffs required, will cost approximately $350 million to $550 million.
