ATLANTA — The Coca-Cola Co. is reorganizing, reducing its number of operating units from 17 to 9 and creating a platform services group. Platform services is intended to improve scale and expertise throughout the nine new operating units.
“We have been on a multi-year journey to transform our organization,” said chairman and chief executive officer James Quincey. “The changes in our operating model will shift our marketing to drive more growth and put execution closer to customers and consumers while prioritizing a portfolio of strong brands and a disciplined innovation framework. As we implement these changes, we’re continuing to evolve our organization, which will include significant changes in the structure of our workforce.”
The company’s current structure includes 17 business units that are under four geographical segments plus Global Ventures and Bottling Investments. After the restructuring, the 17 units will be reduced to 9. The operating leaders will report to Brian Smith, president and chief operating officer.
A portfolio review is also underway with the intent of creating “a tailored collection of global, regional and local brands with the potential for greater growth,” according to the company. The five global categories management sees having the strongest opportunities include Coca-Cola; sparkling flavors; hydration, sports, coffee and tea; nutrition, juice, milk and plant; and emerging categories.
The company did not provide details regarding workforce reduction but did say it is working on a plan and will share more information later. Management did announce a voluntary separation program that will be offered to approximately 4,000 employees in the United States, Canada and Puerto Rico who have a most-recent hire date on or before Sept. 1, 2017. A similar program will be offered in many countries internationally. Costs associated with the severance program are expected to be $350 million to $550 million, according to the company.