On Friday, Coca-Cola has announced a workforce restructuring plan – including voluntary job cuts.
CNBC reported that shares of the company, with a market value of $210 billion, rose 1% in premarket trading. The stock has fallen 12% this year.
The company will offer voluntary layoff packages to employees who qualify. They will start with around 4,000 workers in the U.S., Canada, and Puerto Rico. These workers are those who were hired on or before September 1, 2017.
Coca-Cola is forecasting the cost of its overall global severance program. They project that it will cost between $350 million and $550 million, as reported by Fox Business.
“We have been on a multi-year journey to transform our organization,” said Chairman and CEO James Quincey in a written statement. “The changes in our operating model will shift our marketing and drive more growth and put execution closer to customers and consumers while prioritizing a portfolio of strong brand 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,” he added.
According to CNBC, the company’s restructuring plan comes as it streamlines its drink portfolio. They now aim to focus on larger and more popular brands. Coca-Cola is also planning to “build new operating units focused on the regional and local level that will work closely with five global marketing leadership teams, divided up by category.”
The company has more than 86,200 employees worldwide.