Coca-Cola cuts 6,000 jobs

Coca-Cola is cutting 6,000 jobs from its worldwide operations this year in a reorganisation prompted by a slide in profits and the appointment of a new chief executive.

Coca-Cola cuts

2,500 jobs at Atlanta headquarters

800 elsewhere in US

2,700 more around the world

Saves $300m a year

The company says the plan will save $300m (£188m) a year, but there will be a one-off charge of $800m (£500m) to cover the cost of redundancies.

The restructuring includes the loss of 2,500 positions at company headquarters in Atlanta and 800 elsewhere in the US.

About 2,700 jobs will go in other countries. Globally, the company employs almost 30,000.

A spokeswoman said she was not aware that any of the cuts would be in the UK.

More than expected

Analysts had expected the company to announce 2,000 job cuts.

IN: Douglas Daft

"The world in which we operate has changed dramatically and we must change to succeed," said Coca-Cola's incoming chief executive, Douglas Daft.

"This realignment will better enable the company to serve the changing needs of its customers and consumers at the local level and ensure that Coca-Cola complements the local culture in every community where it is sold."

Mr Daft, who is taking over the top job after the surprise resignation of chairman and chief executive Douglas Ivester, has moved swiftly in the past two months to reshuffle operations and install a new management team.

Poor performance

OUT: Douglas Ivestor

Coca-Cola has lost ground to its rival Pepsi, analysts say, and is still reeling from the aftermath of the Asian financial crisis.

Coca-Cola reported losses of $45m (£28m) in the fourth quarter.

The company's performance was hit by an $813m (£510m) writedown of bottling assets, predominantly in Russia, and a need to reduce inventories at its bottling operations.

Mr Daft said: "These steps are designed to ensure we have the strongest and most efficient bottling system in the world.

"With an even tighter management of inventory levels, our bottlers will free up additional working capital as they continue to take steps to increase their returns on invested capital."

Already a big seller in the Twenties

He said the group had been looking very closely at its "long-term growth objectives", and that the current goals for volume and earnings per share growth were "probably a little on the high side".

The group was developing a business strategy "out of which appropriate and realistic targets will come", he said.

He promised that within the next 180 days the group would have refined its business strategy sufficiently to give proper long-term targets.