Coca-Cola announces global job cuts

<p>Coca-Cola is set to cut 1,800 jobs as part of a saving programme.</p>

Coca-Cola has announced a series of job cuts across its global operations in a bid to reduce costs.

In October, the drinks giant stated that it needed to save $3 billion (£1.9 billion) from its annual costs and warned that it would result in job cuts. The first announcement will see 1,800 workers being made redundant across its global operations. Coca-Cola's headquarters in Atlanta, US, will bear the brunt of the cuts but there will be reduction in its other offices.

The decision to embark on a cost-cutting programme came after the company, which owns brands such as Sprite, Powerade and Fanta, stated that it had missed profit targets due to falling sales. Coca-Cola noted that earnings between July and September 2014 had dropped 14 per cent and was compounded with slow revenue growth.

In an emailed statement to the BBC, a spokesperson for Coca-Cola said: "[We have begun] the process of informing associates in the United States and in some international locations about the impacts to their departments.

"We have identified 1,600 to 1,800 positions in Corporate, Coca-Cola North America and Coca-Cola International that will be eliminated in the coming months."

The latest restructuring programme is the first of its kind at Coca-Cola since it announced 5,000 job losses in 2000. A spokeswoman for the drinks manufacturer confirmed that there would be talks with employees affected by the cuts and they would receive "strong transition assistance" during this period.

In August, Coca-Cola announced its intention to tap into the energy drinks market by purchasing a stake in Monster Beverage. In a cash deal worth $2.15 billion, the company acquired a 16.7 per cent stake in the firm as it looked to move its growth away from the fizzy drinks sector and invest in different markets.

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.