Coca-Cola is cutting up to 2,000 jobs in the coming weeks as part of a plan to shave $US3 billion from its annual budget, the Wall Street Journal reports.
The impact of the cuts is expected to be most significant at Coke’s Atlanta headquarters and global regional offices, “where more than 10% of corporate staff could lose their jobs,” according to the report.
Employees will receive notice of the cuts by Jan. 15.
Coca-Cola laid out a plan in October to find $US3 billion in annual budget savings by 2019. The plan was announced after the company posted a 14% decline in third-quarter proft.
In addition to job cuts, the company is planning to axe executives perks, including limousine service, as well as a lavish Christmas party for Wall Street analysts, according to the Journal.
The company is also disconnecting the voicemail feature on phones in its headquarters, which will save about $US100,000, and implementing stricter budget control over managers.
The company’s new budget policy will require managers to “reset spending plans each year to justify all expenditures,” according to the Journal. Under the old policy, managers could roll excess annual spending into a new budget year.
Coca-Cola is suffering from an industry-wide decline in soda sales as consumers become more health conscious. Soda accounts for more than 70% of the company’s sales and soda volumes were up just 1% in the first nine months of the year.
Business Insider Emails & Alerts
Site highlights each day to your inbox.