Coca cola to downsize 1000-2000 jobs globally in the coming weeks, says a wall street journal report. This downsizing is a part of cost cutting program to reduce $3 billion dollars because of its 14 per cent drop in third-quarter profit, according to the Journal Report.
The impact of these cuts would be mostly in the Atlanta headquarters and global regional offices, “where more than 10% of corporate staff could lose their jobs,” according to the Journal report. In addition to the job cuts the company is also planning to axe executive’s perks, including limousine service, as well as a lavish Christmas party for Wall Street analysts.
A Coke spokeswoman said “the company had informed employees that the restructuring would impact jobs”, but she did not confirm the estimated number of job cuts. She also added “Coke is still figuring out how many jobs it would cut and employees in some eliminated positions would be allowed to apply for other jobs in the company”.
Coca cola, disconnecting the phones voice mail feature in its headquarters, and implementing stricter budget control over managers which will save about $100,000 to the company. Wintergreen Advisers, a minority shareholder of the company, last week called for the replacement of Chief Executive Muhtar Kent, calling him “incapable of leading Coke’s turnaround.