Coca-Cola to cut thousands of jobs due to plunging sales

Coca-Cola Co joined a list of big US companies laying off thousands of workers after reporting a 28 percent slump in sales last month due to the effects of the pandemic.

The company was offering voluntary redundancy to 4,000 workers in the US, Canada, and Puerto Rico and would offer similar deals in other markets, while signaling that more layoffs were likely.

According to the company, the voluntary program is expected to cut the number of involuntary separations, adding that it would incur expenses of about $350 million to $550 million in global severance programs.

Coca-Cola also intends to halve the number of its operating units from the current 17 to nine under four geographical segments.

The company took a hit from closures of cinemas, restaurants, and bars where it usually sells heavily.

Shares in the company rose by about one percent in early trading.

Among US companies that would cut thousands of jobs were United Airlines Holdings Inc, which would reduce cut pilot jobs by about 21 percent due to a slump in air travel.

Oilfield services giant Schlumberger NV and Cosmetics maker Estee Lauder Cos Inc have in recent weeks announced plans to cut thousands of jobs.