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Coca-Cola Blues

Posted By: von Monke
Date: Wednesday, 26-Jan-2000 16:24:40
www.rumormillnews.com

In Response To: Re: Coke & Pepsi (von Monke)

Apparently Coca-Cola has suffered (sp?) financially as a result of its embarrassing European failures. Follow the link below to see the whole story.

vM

Updated 11:51 AM ET January 26, 2000

By JUSTIN BACHMAN, Associated Press Writer

ATLANTA (AP) - The Coca-Cola Co. plans to eliminate about 6,000 jobs, or about one-fifth of its work force, as part of a major restructuring at the world's largest soft drink maker.

The job cuts announced today - the largest in the company's 113-year-history - will affect 2,500 positions at the company's Atlanta headquarters, 2,700 outside the United States and 800 jobs elsewhere in the U.S.

The job eliminations represent about 21 percent of the company's 29,000 worldwide work force.

It is the latest move by the Atlanta-based beverage company to improve its profitability since president Douglas Daft was designated to become chairman and CEO after its April shareholders' meeting.

Daft, who will succeed M. Douglas Ivester in the company's top posts, called the job reductions "painful both for those within the company who will be directly affected and for those responsible for making this decision."

Coke estimated that the cuts will save $300 million.

It will take an $800 million charge before taxes this year to cover costs of the realignment. Laid-off workers will be offered severance packages, outplacement and counseling, Coke officials said.

The announcement came as Coca-Cola reported fourth-quarter earnings that slightly exceeded Wall Street expectations.

But weak profits for the year have been a drag on Coke's stock price. In morning trading on the New York Stock Exchange, Coke shares were down $1.25 1/2 at $64.62 1/2.

Daft has made a number of personnel moves in recent weeks and is trying to decentralize Coke's operations so the company can react more quickly to local conditions.

Today, Daft conceded that a product recall over a health scare in several European countries last year had been "a wake-up call" that made company officials realize they were not well-prepared to respond to local situations.

The European recall was only part of Coke's worldwide problems in the past year. Coke's attempted takeovers of the French brand Orangina and Cadbury Schweppes' overseas brands either collapsed or were scaled back because of regulatory concerns in Europe. And in the United States, several former and current black employees have sued the company for racial discrimination.


Rest of the Excite News Story



RMN is an RA production.

Articles In This Thread

Oak Ridge Y2K
One Eyed Man -- Wednesday, 5-Jan-2000 08:10:18
Coke & Pepsi
von Monke -- Wednesday, 5-Jan-2000 12:21:23
Re: Coke & Pepsi
One Eyed Man -- Wednesday, 5-Jan-2000 14:47:24
Re: Coke & Pepsi
von Monke -- Saturday, 8-Jan-2000 20:47:21
Re: Coke & Pepsi
Freddie Arbuthnot -- Saturday, 15-Jan-2000 13:02:34
Coca-Cola Blues
von Monke -- Wednesday, 26-Jan-2000 16:24:40
People at Risk
von Monke -- Thursday, 13-Jan-2000 18:07:11

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AN EXPLANATION OF THE FACTIONS