Coca-Cola to slash 1200 jobs as part of $3.8bn cost-cutting strategy

Coca-Cola has confirmed plans to slash around 1,200 jobs due to a falling demand for its fizzy drink range.

The US giant’s global carbonated drink sales dipped 1% in the three months to March 31.

It is believed that Coca-Cola, alongside rival drinks company PepsiCo, saw sales take a hit as North American and European consumers increasingly turn away from sugary beverages.

Coca-Cola said the cuts will start in H2 2017 and continue into 2018.

The firm is raising its cost-cutting target by $800m in annualised savings, with a view to saving around $3.8bn (£3bn) by 2019.

According to BBC News, incoming Coca-Cola chief exec James Quincey said the majority of the additional cost savings will be from corporate job reductions.

Savings will also be made through the company’s supply chain, marketing efforts and changes to its operating model, a spokesperson said.

Coca-Cola, which employs 100k people globally, is expecting its full-year adjusted profits to drop by between 1% and 3%.

The announcement from Coca-Cola comes as Swiss confectionery giant Nestle plans to cut hundreds of jobs.

The company, which is moving some production to Poland in a shake-up of its UK sites, will cut 298 jobs – 158 of which will hit its Yorkshire workforce and 110 its operations in Fawdon, Newcastle.

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