Johannesburg: Coca-Cola Beverages South Africa (CCBSA) has announced plans that could see more than 600 workers lose their jobs. The Food and Allied Workers Union (FAWU) confirmed that it received formal notices of possible retrenchments on September 2.
The union has strongly opposed the move and consultations are currently underway. No final decision has yet been made regarding the scale of the layoffs.
CCBSA Statement on Restructuring
In its statement, CCBSA said the decision is linked to shifting industry dynamics and the need to restructure operations. The company added that if the plans go ahead, “some roles may be impacted and this may unfortunately result in job losses.”
CCBSA forms part of Coca-Cola Beverages Africa (CCBA), which ranks as the eighth-largest Coca-Cola bottler worldwide in terms of revenue. CCBA has not issued any further comments on the development.
Economic Pressure in South Africa
The proposed job cuts are another setback for South Africa’s labor market. Several major companies, including Ford Motor South Africa, Glencore, ArcelorMittal South Africa, and Goodyear South Africa, have also announced retrenchment plans in recent months.
Coca-Cola Reviews Costa Coffee Business
In related global news, U.S. beverage giant Coca-Cola is exploring options for its British coffee chain, Costa Coffee. Reports suggest the company has partnered with investment bank Lazard to assess a potential sale.
Coca-Cola purchased Costa Coffee in 2018 for more than $5 billion. The chain now operates across 50 countries, with over 2,700 outlets in the UK and Ireland and more than 1,300 stores internationally.
Initial talks have reportedly been held with a few potential bidders, including private equity firms. Indicative offers are expected later in the autumn. However, sources indicated that Coca-Cola may ultimately decide not to proceed with the sale.
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