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Coke Layoffs: The Coca-Cola Co (KO) to Cut 1,200 Jobs After Weak Q1

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The Coca-Cola Co (NYSE:KO) announced a series of Coke layoffs following a disappointing first quarter.

Coke layoffsThe company may still be the largest producer and manufacturer of soft drinks in the world, but its profit has dipped due to the overall declining interest in sweet, fizzy beverages. The number of studies proving how damaging many of its drinks are have not helped.

Coke will be shedding its workforce by 1,200 employees, which amounts to roughly 1.2% of its 100,000 workers around the world. The move is part of a broader restructuring effort to make the company leaner, eventually shedding $800 million of its expenses.

The soft drink company reported earnings that fell 20% year-over-year on a Tuesday call, while revenue took an 11% hit compared to the same period a year ago.

Profit came in at 43 cents per share for Coca-Cola on an adjusted basis, missing the consensus estimate of 44 cents per share. Meanwhile, revenue was $9.118 billion, which did beat the outlook of $8.874 billion.

The company is in the process of shifting into a more appealing brand for health-conscious consumers by adding healthier beverages such as milk, soy-based products and even its own brand of water.

The Coke layoffs may be the first step towards the company's return to form in the industry.

KO stock dipped 0.2% Tuesday.


This article was written by Karl Utermohlen, InvestorPlace Writer for InvestorPlace on Apr 25, 2017.

This article published in collaboration with Scutify, the best app for traders and investors. Download the Scutify iOS App, the Scutify Android App or visit Scutify.com.

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