Thursday, April 27, 2017
Coca-Cola has a new CEO and is planning to cut 1,200 jobs as part of a broader cost-cutting plan to save $800 million.
The layoffs, which will take place during the second half of this year, are part of a plan to make Coke more agile and lean, said incoming CEO James Quincey (pictured). The company is also in the process of refranchising some of its bottling operations in North America to save money, according to a CNN report.
Quincey, currently Coke’s chief operating officer, will take over as CEO on May 1, succeeding long-time CEO Muhtar Kent, who will remain at Coke as its chairman.
Coke has struggled over the past few years as consumer tastes have shifted away from sugary drinks. Even Coke’s diet brands are in decline due to health risks associated with artificial sweeteners, the news report says.
Coke said on Tuesday that its overall sales were down 11 per cent compared to a year ago while profits fell 20 per cent. That’s a big reason why Coke is pushing more into healthier beverages like water, milk and soy-based drinks, the report says.