Coca-Cola to cut 2,200 jobs globally

The move follows Coca-Cola's August announcement of plans to streamline operations.

Coca-Cola said Thursday it will cut 2,200 jobs as part of a restructuring as it prepares for a better post-pandemic market in 2021 following this year's sales hit.

The downsizing, the latest by a large US company amid the pandemic, will impact about 2.6 percent of Coca-Cola's global workforce and will eliminate 1,200 US jobs, a company spokesman said.

The soda giant established a voluntary separation program but "some level of involuntary reductions" also will be needed, the spokesman said.

"Our transformational work was well underway prior to the pandemic," he said. "The pandemic was not a cause for these changes, but it has been a catalyst for the company to move faster."

The move follows Coca-Cola's August announcement of plans to streamline operations, slimming down to nine units from 17 as it shuffles staff in an effort to promote its most promising brands.

The company expects $350 million to $550 million in expenses tied to global severance programs.

Coca-Cola reported a 33 percent drop in third-quarter profits to $1.7 billion following a nine percent decline in revenues to $8.7 billion.

Other large US companies also have announced sizable job cuts in recent weeks including insurer Allstate, oil giant ExxonMobil, American Airlines and United Airlines.