Coca-Cola begins business overhaul and downsize
Soft drinks giant Coca-Cola has started a company-wide restructuring and will be shedding employees
Global drinks brand Coca-Cola today announced a worldwide reorganisation and invited employees to apply for voluntary severance. The company said it is building a networked global organisation, creating nine new operating units, replacing its current business units and groups.
“We have been on a multi-year journey to transform our organisation,” said James Quincey, Coca-Cola’s chairman and chief executive. “The changes in our operating model will shift our marketing to drive more growth and put execution closer to customers and consumers while prioritising a portfolio of strong brands and a disciplined innovation framework.”
Coca-Cola’s current model has 17 business units sitting under four geographical segments, plus Global Ventures and Bottling Investments. It now consists of nine operating units that also sit under four geographical segments, along with Global Ventures and Bottling Investments.
The units are: Coca-Cola. Sparkling Flavors, Hydration, Sports, Coffee and Tea,Nutrition, Juice, Milk and Plant Emerging Categories.
The company’s operating leaders will report to president and chief operating officer Brian Smith. Global category leads will report to chief marketing officer Manolo Arroyo.
The company has also created a Platform Services unit to support the operating units, categories and functions to create efficiencies and deliver capabilities at scale worldwide. This includes data management, consumer analytics, digital commerce and social/digital hubs.
Platform Services is designed to improve and scale functional expertise and provide consistent service, including for governance and transactional work. The company said that will eliminate duplication of efforts across the company and is built to work in partnership with bottlers.
Staff changes
These changes will result in the reallocation of some people and resources, which will include voluntary and involuntary reductions in employees to be announced at an unspecified time in the future, though it is inviting its staff to apply for voluntary severance straight away.
The severance programme will first be offered to approximately 4,000 employees in the US, Canada and Puerto Rico who have a most-recent hire date on or before 1 September 2017.
A similar programme will be offered in many countries internationally. The voluntary programme is expected to reduce the number of involuntary separations.
The company said that the overall global severance programmes is expected to cost between $350 million to $550 million.
“As we implement these changes, we’re continuing to evolve our organisation, which will include significant changes in the structure of our workforce,” Quincey concluded.