Coca-Cola on Thursday announced plans to lay off 1,600 to
1,800 of its corporate, U.S. and international employees in the coming months.
The move came hours after McDonald's, on Wednesday, confirmed that it was
laying off 63 employees at its corporate office and that some other open,
corporate positions had been eliminated. While both moves had been widely
anticipated, they only begin to reflect the sizable cutbacks and changes
expected to hit both iconic brands in 2015.
The job cuts are part of Coke's $3 billion cost-cutting
program that was announced in October -- about three times the $1 billion in
cuts that had previously been announced. The job reductions at McDonald's are
part of a wider corporate review to redirect nearly $100 million in savings
towards business priorities.
For Coca-Cola and McDonald's, 2015 will be a year of
cutbacks, change and evolution as an increasingly internet-savvy and health
conscious public continues to moves away from its decades-long habit of
purchasing meals comprised of sugary drinks and fried and processed foods.
Back in October, when both companies posted wretched third
quarter results, CEOs for both brands announced plans for big cutbacks and
changes. At the time, Coca-Cola posted a 14% drop in third quarter profit and
McDonald's fell a worse-than-expected 30%. But these cutbacks may be just the
beginning.
While Thursday's layoffs at Coke had been speculated on for
weeks, the announcement hit hard in Atlanta. Meanwhile, at McDonald's, more changes are
expected. McDonald's USA will have a "resourcing announcement" later
this quarter. The announcement could include both job eliminations and job
creations since "we're directing resources toward business growth
priorities" such as digital and new restaurant platforms.
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