Categories: Business

Coca-Cola will lay off thousands of employees, decision taken due to falling cell

Photo: AP

Coca-Cola to cut thousands of jobs

new Delhi: Coca-Cola has decided to cut thousands of jobs. The company will also reduce its number of business units. The company has taken this decision due to decreasing beverage sales in the corono virus epidemic. Coke said in an official statement that the job cuts would be voluntary and involuntary cuts.

The company will first cut 4,000 employees in the United States, Canada and Puerto Rico, and will then see similar voluntary programs in other countries. The company said the number of involuntary layoffs would be less.

American brand Coca Cola which is a manufacturer of dozens of juices, water and soft drinks. The company said that it currently plans to cut 9 out of 17 business units. But $ 350 to 550 million will be spent to compensate employees for their evacuation. Coca-Cola's second quarter ended June 26, with the company's sales down 28 percent to $ 7.2 billion.

According to the report, Coke had 86,200 employees as of 31 December 2019, of which approximately 10,100 were based in the United States.

Coke is focusing on its most popular segment which includes its main Coca-Cola line and products such as sports drinks, coffee and tea. The company wants to expand into growing categories such as sparkling water and plant-based drinks.

Only 3.6 percent increase in salaries of employees in current financial year: Survey

Amidst the corona virus epidemic, companies have given their employees an average increment of 3.6 percent in the current financial year 2020-21. In the last financial year, the average salary of employees increased by 8.6 percent. This fact has been revealed in a survey by leading consulting company Deloitte Touch Tohmatsu India LLP. According to the survey, two things 'time' and the impact of Kovid-19 have played the most important role in the increment of employees in the current financial year.

The survey said, "Organizations that decided increment before the lockdown began in March 2020 have given their employees more increments than other companies. At the same time, a large number of companies believe that due to Kovid-19, their revenue will fall by more than 20 percent in 2020-21. Such companies have more or less given increments to their employees. "

A nationwide shutdown was implemented in the country on 25 March to prevent the spread of Kovid-19. In late May, however, the restrictions were relaxed. But in some states, the number of cases of corona virus continued to be controlled. This affected economic activities badly. The second phase of the workforce and increment survey of the year 2020 was started in June 2020. 350 companies participated in it.

According to the survey, "Only four out of 10 companies have given employees increments in 2020. 33 percent of the companies have decided not to increase the salary of the employees. Other companies have not yet decided on this. Accordingly, the average increment in 2020 is 3.6 percent, which is less than half of the previous year. Last year companies gave 8.6 per cent increments to their employees. "

The survey says that this figure of increment is the lowest in decades. Deloitte has said that if the survey only takes out organizations that have increased the salaries of their employees, the average increment is 7.5 percent. In the current financial year, the number of companies that have given their employees more than 10 percent increments is less than 10 percent.

This post was published on August 29, 2020 8:18 pm

Content Team

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