Coca-Cola to slash 1,200 jobs as demand for sugary drinks sink

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A Coca Cola sign is seen as Coke products are on display in a store as the company announces plans to cut 1200 corporate staff jobs. The announced changes come as the company battles a slide in soda sales which along with higher costs has lead to a 20 per cent drop in quarterly profit. Photo: AFP

Published: 4:00am, 26 Apr 2017Updated: 4:56am, 26 Apr 2017

Coca-Cola plans to cut 1,200 jobs as it deepens its cost-cutting initiatives in response to sluggish soda sales, the company said Tuesday.

The maker of Sprite and Fanta announced the job cuts as it reported lower second-quarter profits due to restructuring costs and flat sales amid efforts to tout new low-sugar beverages in response to flagging demand for soda.

The job cuts account for about one per cent of the soda giant’s 100,300 employees. Coca-Cola said it also is expanding its cost-cutting programme to reach US$800 million annually by 2019.

While the job cuts “will clearly be difficult for those impacted, these changes are critical for us to create an environment where we can accelerate growth and become the consumer-centric, total beverage company we need to be in a fast-changing world,” incoming chief executive James Quincey said in a statement.

Bottles of Coca Cola products at a store in Washington,DC. Coca-Cola reported it will cut 1,200 jobs due to low sales and flat volumes as it touts new low-sugar beverages in response to flagging demand for soda. Photo: AFP

Net income in the first quarter plunged to US$1.2 billion, down 20.3 per cent from the year-ago period.

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