No More Parties Or Limos? Coca-Cola Starts Cutting Jobs & Perks
Coca-Cola is really in the mood for cost cutting. Not only did a majority of employees at the company’s headquarters ditch voicemail, which will save Coca-Cola money, the soft drink giant is also cutting up to 2,000 jobs in the coming weeks. According to the Wall Street Journal, it plans to cut $3 billion from its annual budget.
At the Atlanta headquarters and global regional offices, “more than 10 percent of corporate staff could lose their jobs,” according to the report. The cuts will be announced by January 15.
The cost-cutting plan was developed back in October, after the company posted a 14 percent drop in third-quarter earnings, as a way to trim $3 billion in annual budget savings by 2019.
And it’s not just jobs and voicemail the company is cutting. Coca-Cola is also axing such executives perks as limousine service and lavish parties.
The company is falling victim to the consumer trend away from sodas to healthier drinks. “Coca-Cola is suffering from an industry-wide decline in soda sales as consumers become more health conscious. Soda accounts for more than 70 percent of the company’s sales and soda volumes were up just 1 percent in the first nine months of the year,” reports Business Insider.