Coca-Cola to sack 1,200 employees as sales fizzle out
Warren Buffett, who has professed his love for Coke and is the largest shareholder of the company may need to rethink his drinking choices as well as investment acumen as the firm is now sacking people to remain profitable. Coca-Cola will sack 1,200 people as sale slumps and may continue to do so to remain profitable. Here's how the "bubbly" feeling got busted.
The drive towards healthy living played havoc with demand
Looks like people are not opting for Coke or even Pepsi for that matter anymore as they are opting for healthier living choices and shying away from aerated sugary drinks. Some of its major markets like North America and Europe have noticed a huge fall in demand lately, forcing the firm to take drastic measures to stay afloat in this trying condition.
Fall in demand forces firm to tighten its belt
Coca-Cola's global carbonated sales fell by 1% in the last quarter and it may look like a small margin but when you consider the extent of its business the numbers are high. The growth outlook of the firm in the coming quarters is not inspiring either and this is not a case of singling out as its rival Pepsi isn't faring any better.
Desperate times call for desperate measures
Coke is planning to hike its cost-savings program by $800 million to $3.8 billion and more job cuts will follow as the firm aims to become "faster and more agile." Incoming Coca-Cola CEO James Quincey said, "While these necessary changes are always very difficult, they will help us do fewer things better to lead and support our operating units."
Warren Buffett is the new face of Coke
Buffett is fighting hard for his investment and his drink, as a special edition of Cherry Coke cans with his face on it is doing rounds in China. Buffett doesn't need to play a poster boy to earn his bread, but apparently, he is doing it for free to boost the firm's sales which in turn will boost his stocks in the firm.
"There's a future for no calorie"
You know things are getting sinister when a long-time employee and incoming Coca-Cola CEO Quincey says "There's a future for no calorie", fully aware that Coke's products have traditionally been packing calories than shedding them. Coca-Cola is now revamping itself to keep up with the times and is driving Coca-Cola Zero Sugar aggressively in the markets to shed the "unhealthy" tag on its products.
