Coca-Cola to cut 1,200 jobs, boosts savings target
By Sruthi Ramakrishnan
(Reuters) - Coca-Cola Co (KO.N: Quote) said on Tuesday it would cut about 1,200 jobs as the beverage maker expands its savings target amid falling demand for fizzy drinks globally.
Shares of the Dow component were up marginally at $43.39.
Coca-Cola and rival PepsiCo Inc's (PEP.N: Quote) soda sales have taken a hit as consumers in North America and Europe increasingly shun sugary drinks.
Global soda sales fell 1 percent in the first quarter ended March 31, Coca-Cola said on Tuesday.
The Atlanta-based company said it was increasing its cost-cutting target by $800 million in annualized savings and now expects to save $3.8 billion by 2019.
The majority of the additional savings would come from the corporate job reductions, incoming Chief Executive James Quincey said on a post-earnings conference call.
The company, which also reported a smaller-than-expected quarterly profit, said it expects to reinvest at least half of the $800 million saved to mainly boost growth in its non-carbonated drink business.
"We are not too worried about this quarter's miss," RBC Capital Markets analyst Nik Modi wrote in a note. Continued...