Coca-Cola Beverages plans over 600 job cuts

Coca-Cola Beverages South Africa plans to cut more than 600 workers, stated the Food and Allied Workers Union spokesperson Dominique Martin.

The bottler for Coca-Cola (KO.N), sent the union notices of possible retrenchment on September 2, but the union is opposed to the proposed layoffs.

Consultations with the union are underway and no final decision has been made.

“In response to evolving industry dynamics, Coca-Cola Beverages SA intends to make adjustments to its organisation that, if implemented, may result in some roles being impacted and may unfortunately result in job losses,” CCBSA said.

CCBSA is part of Coca-Cola Beverages Africa, which is the eighth-largest Coca-Cola bottling partner in the world by revenue.

Coca-Cola Beverages Africa did not immediately respond to a request for comment.

The proposed cuts are another blow to South Africa, after other companies including Ford Motor South Africa, Glencore, ArcelorMittal South Africa and Goodyear South Africa also recently announced planned job cuts.

In an another news, U.S. soft drinks company Coca-Cola is working with investment bank Lazard to review options, including a potential sale, of British coffee chain Costa, which it acquired in 2018 for over $5 billion.

Reuters could not immediately verify the report. Coca-Cola, Costa, and Lazard did not immediately respond to requests for comment.

Atlanta-headquartered Coca-Cola has held initial talks with a small number of potential bidders for Costa, including private equity firms, according to a news report, citing unidentified sources.

The report said indicative offers are expected in early autumn, while noting that Coca-Cola may ultimately choose not to proceed with a sale.

Costa Coffee operates in 50 countries, with more than 2,700 coffee shops across the UK and Ireland and over 1,300 more outlets globally, according to its website.

Coca-Cola plans over 600 job cuts