"Global beverage giant" Coca-Cola has announced another round of layoffs! Recently, according to foreign media reports, Coca-Cola will cut 2,200 jobs globally, and in the U.S., it will reduce 1,200 positions through layoffs and buyouts. It is reported that Coca-Cola will reduce its U.S. workforce by 12% through voluntary departures and layoffs. **-01-**Coca-Cola to Cut 2,200 Jobs Globally On December 17, local time, according to CNBC, Coca-Cola will cut 2,200 jobs globally as part of its restructuring plan. The Wall Street Journal reported that in the U.S., Coca-Cola will cut 1,200 jobs through layoffs and buyouts, accounting for approximately 12% of its domestic workforce. Of the 2,200 people cut, both voluntary and involuntary departures are included. Therefore, the company will need to pay approximately $350 million to $550 million in employee severance. However, they have not yet disclosed specific details of the layoff plan or the exact payment amounts. It is noted that these layoffs do not include bottling plant employees. Additionally, Coca-Cola's North American business unit will undergo restructuring like other global divisions. This layoff action was anticipated by analysts. The main reason is that the flu pandemic has severely impacted the company's revenue and increased costs for the beverage giant. Data shows that Coca-Cola's net revenue in the third quarter of this year fell 9% to $8.7 billion, as many stores faced operational crises during the pandemic, and some restaurants even closed permanently. About half of the company's sales typically come from consumers drinking its beverages away from home, which is a significant blow for a beverage company. In addition to job cuts, Coca-Cola also plans to reduce its operating divisions in four U.S. regions from 17 to 9. Currently, they have not disclosed which specific divisions will be affected. As of the end of 2019, the Atlanta-based company had 86,200 employees globally. **-02-**Previously Announced 4,000 Job Cuts Earlier, on August 28, Coca-Cola had stated that it would cut jobs globally as part of a company-wide restructuring. Although specific details of the layoff plan were not disclosed, Coca-Cola said it would offer voluntary separation packages to 4,000 employees in the U.S., Canada, and Puerto Rico. Those eligible for voluntary separation in North America are employees hired on or before September 1, 2017. At the same time, the announcement stated that structural changes would lead to the reallocation of personnel and resources, including both voluntary and involuntary staff reductions. The first phase of layoffs will be conducted through a voluntary separation program, which will allow eligible employees to choose a separation package that includes severance pay, including cash, equity, and health and welfare insurance. This voluntary program will first be offered to approximately 4,000 employees in the U.S., Canada, and Puerto Rico, whose most recent hire date is on or before September 1, 2017. Similar programs will also be offered in many countries internationally. The voluntary program is expected to reduce the number of involuntary separations. Due to these actions, the company expects to record approximately $350 million to $550 million in severance, stock compensation, and employee benefit-related costs. The company expects these costs to primarily occur starting in the third quarter of 2020 and continuing through the first quarter of 2021. Actual amounts may vary due to several factors, including but not limited to the number of employees affected by voluntary and involuntary layoffs. Due to the pandemic and current market environment, Coca-Cola stated: "We must act differently to become stronger." Therefore, in August 2020, it announced a series of strategic steps to change the organization's structure. These changes will lead to the reallocation of some personnel and resources, as well as voluntary and involuntary staff reductions. **-03-**Coca-Cola Revenue Beats Expectations; Third-Quarter Revenue Down 9% On October 22, Coca-Cola released its third-quarter 2020 financial results, showing overall revenue beat expectations. Data showed that third-quarter revenue was $8.652 billion, down 9% year-over-year; net income attributable to shareholders was $1.737 billion, and operating income was $2.298 billion. Coca-Cola stated that the revenue decline was mainly due to the ongoing impact of the COVID-19 pandemic on beverage demand, with sales volumes declining across all four categories. Among them, sparkling soft drinks were least affected, with sales volume declining only 1%. Juice, dairy, and plant-based beverages saw a 6% decline, water and sports drinks saw an 11% decline, and coffee and tea were hit hardest with a 15% decline, mainly due to the severe impact of the pandemic on Coca-Cola's Costa brand. According to the financial report, by business region, Coca-Cola's third-quarter revenue in North America reached $3.088 billion, still the largest revenue source for Coca-Cola; Europe, the Middle East, and Africa generated $1.693 billion, ranking second; the Asia-Pacific market ranked third with $1.334 billion. However, the pretax profit in Europe, the Middle East, and Africa was as high as $925 million, surpassing North America and ranking first. It is worth noting that the downward trend in single-serve sales volume in the Asia-Pacific market continued to improve, from 18% in the second quarter to 4%, mainly due to strong growth in the sparkling beverage category in the Chinese market. As U.S. restaurants faced a bleak business situation during the pandemic, with many even closing permanently, these factors significantly impacted Coca-Cola's sales. Coca-Cola's Chairman and CEO James Quincey said: "During this year's pandemic crisis, our company system has remained focused on our 'all-beverage' strategy. We are continuously accelerating the ongoing transformation to enable our company to recover faster than the macro economy." He noted that although many challenges remain, the progress made in this quarter gives him confidence that they are on the right track. **-04-**Coca-Cola Implements "Slimming" Plan Coca-Cola had previously announced a "slimming" plan. In October, the company stated it would eliminate 200 brands, half of its investment portfolio. Mainly to respond to the COVID-19 crisis, Coca-Cola launched a business restructuring strategy. In terms of product portfolio, Coca-Cola plans to significantly streamline its brands. The first product confirmed to be discontinued is ZICO coconut water. Coca-Cola also plans to stop retail sales of Hubert's lemonade and close Odwalla juice and smoothie product lines. In this slimming plan, Coca-Cola decided to eliminate some products, mainly small, regional, and low-profit brands, to simplify and focus on innovation and R&D. Previously, Coca-Cola had 500 wholly-owned or partially-owned brands globally. In August, Coca-Cola intended to reduce that number by more than half. The company stated it will focus on the most popular market segments, including Coca-Cola and Coke Zero and other same-name beverages. Currently, as Coca-Cola's third-largest global market, China is one of the beverage giant's crucial strategic markets, and it continues to expand its presence in China. **-05-**Coca-Cola Favored by "Big Shots" On the evening of November 7, Warren Buffett's Berkshire Hathaway (BRK.A) disclosed its third-quarter financial results. As of the end of the third quarter, approximately 70% of Berkshire Hathaway's stock holdings were concentrated in four stocks: American Express, Apple, Bank of America, and Coca-Cola. Among them, Coca-Cola holdings were valued at $19.7 billion. According to media reports, Buffett has loved Coca-Cola all his life and has held it for 32 years. In addition, Coca-Cola is also favored by Dalio. In November, Bridgewater Associates submitted its latest holdings data to the U.S. SEC. In terms of increases, Bridgewater favored consumer stocks in the third quarter, increasing its stake in Coca-Cola, holding 2.0311 million shares at the end of the third quarter, with a market value of $100 million. Looking at its stock performance, Coca-Cola's share price has been rising with fluctuations in recent years, showing considerable performance. This year, it experienced a significant drop in February and March due to market conditions, hitting a stage low on March 23. However, it subsequently continued to rise with fluctuations. To date, the stock has accumulated a gain of over 40%, with market value increasing by $76.9 billion, and the latest total market value is $228.9 billion. Source: China Fund News, Author: Li Zhi Tips will be paid 400-2000 yuan once adopted.