Coca Cola has had declining sales in the recent years, with soda drinking on the decline. Now, this world-famous beverage company has to cut 1,200 jobs later this year in an attempt to cut costs.
The cuts are going to come from the corporate staff around the world. This is a 22 percent reduction of the corporate staff, which currently sits at 5,500.
Although that seems like an extreme, it is only 1 percent of their total staff worldwide.
This cut is going to save the company $800 million. This is in addition to previous trims made by the company, which saved them $3 billion.
Some of the bottling and distribution plants have been sold back to independent bottlers. This is a bold move, as Coke’s new focus has become selling concentrates to bottlers.
Coke’s new game plan is to become a “total beverage company.” Their new tactics are to aggressively seek growth and promising drinks, other than soda, for more sophisticated palates.
On a global basis, the Atlanta-based company said total sales volume was flat. That reflected a 1 percent decline in sodas, and a 3 percent increase for the category including water, enhanced water and sports drinks. Volume rose 2 percent in the category including tea and coffee.
In North America, volume rose for Fanta, Sprite and Coke Zero, while Diet Coke continued to decline. For the first three months of the year, the company earned $1.18 billion, or 27 cents per share. Excluding one-time gains and costs, it said it earned 43 cents per share, a penny less than analysts expected, according to Zacks Investment Research.
Total revenue was $9.12 billion in the period, topping analyst forecasts for $8.96 billion. Shares rose slightly in early trading Tuesday.