The Coca-Cola Co. has initiated a major restructuring that will include the reduction of 4,000 employees, the company announced in a press release.

The company will create new operating units focused on regional and local execution that will work closely with five marketing category teams that span the globe to rapidly scale ideas.

The reorganization will be supported by the company's newly created Platform Services organization, which will provide global services and enhanced expertise across a range of critical capabilities. Platform Services will work in service of operating units, categories and functions to create efficiencies and deliver capabilities at scale across the globe, including data management, consumer analytics, digital commerce and social/digital hubs. Platform Services will be led by Senior Vice President and Chief Information and Integrated Services Officer Barry Simpson.

"We have been on a multi-year journey to transform our organization," Chairman and CEO James Quincey said in the press release. "The changes in our operating model will shift our marketing to drive more growth and put execution closer to customers and consumers while prioritizing a portfolio of strong brands and a disciplined innovation framework. As we implement these changes, we're continuing to evolve our organization, which will include significant changes in the structure of our workforce."

The operational side of the business will consist of nine operating units that will replace 17 business units that sit under four geographical segments, plus Global Ventures an Bottling Investments.

The company is also conducting a portfolio rationalization process that will lead to a tailored collection of global, regional and local brands. The company is reinforcing and deepening its leadership in five global categories:

  • Coca-Cola.
  • Sparkling flavors.
  • Hydration, sports, coffee and tea.
  • Nutrition, juice, milk and plant.
  • Emerging categories.

Global category leads will report to Chief Marketing Officer Manolo Arroyo.

The company's structural changes will result in the reallocation of some people and resources, which will include voluntary and involuntary reductions in employees. In order to minimize the impact from these structural changes, the company announced a voluntary separation program to give employees the option of taking a separation package, if eligible.

The company will provide enhanced benefits and will first be offered to approximately 4,000 employees in the U.S., Canada and Puerto Rico who have a most-recent hire date on or before Sept. 1, 2017. A similar program will be offered in many countries internationally. The voluntary program is expected to reduce the number of involuntary separations.

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