Dive Brief:
- Coca-Cola is planning layoffs in 2026 as part of a restructuring initiative, beginning with 75 workers at its corporate headquarters.
- The initial layoffs will take effect around Feb. 28, the company said in a WARN notice filed last week. Coca-Cola expects further workforce cuts to occur in phases. It didn't specify how many jobs would be affected.
- Outgoing CEO James Quincey hinted at a restructuring plan during an October earnings call. He said Coca-Cola needed to do more to drive revenue growth despite its leading position in the marketplace.
Dive Insight:
The corporate layoffs come as Coca-Cola is adapting to changing consumer tastes around sugary drinks and consuming more waters and sports drinks. The company is also preparing to transition to a new CEO in March.
Quincey, who will transition from CEO to executive chairman in March, previously announced Coca-Cola was preparing to restructure in 2026 with plans to invest in other places it viewed as growth areas, including in AI.
“We've got to stay focused on what it is we need to do to win next year and the year after and the year after that, independent of how well we've done in the past,” Quincey said at a conference in December.
Even as Coca-Cola prepares for job cuts, the Sprite and Fairlife maker saw its net revenue grow 5% to $12.5 billion in its third quarter. It is expecting similar growth for the full year.
Coca-Cola is the latest CPG company to announce a reduction in its workforce. Other companies that cut jobs last year include Nestlé, General Mills and Molson Coors.
