Coca-Cola has been a staple in American history since it was founded in 1892. Originally, Coca-Cola was marketed as a temperance drink (alcohol-free drink) in response to the prohibition of alcohol. It was even marketed as a medicinal drink for a while.
Since then, the company has grown to maintain its spot as one of America’s favorite soda brands. Despite its popularity, many Coca-Cola facilities are being closed lately, to the tune of massive layoffs (nearly 900 jobs lost)…
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Coca-Cola has over 950 production facilities around the world. Many of these locations have brought jobs to American citizens and provided financial security.
If you’ve ever been laid off from a job, you already know how stressful it is. The sudden loss of income and uncertainty cause high levels of stress, and that’s not even considering how family members are impacted.
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Coca-Cola is aiming to simplify its business model by consolidating locations and outsourcing to more efficient methods of bottling.
For instance, some of these companies that Coca-Cola is choosing to use for bottling might be using more automation and fewer actual humans doing the work (more efficient and less expensive).
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We can’t ignore the economic uncertainty with trade wars, tariffs, inflation, and overall increased cost of goods and labor.
For instance, aluminum tariffs are being doubled to 50%, so Coca-Cola’s cost for its cans is significantly impacted.
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Let’s look at the closures of several Coca-Cola plants that have happened recently or are scheduled to happen soon.
This list can change, or perhaps the closing dates will be delayed (such was the case for several facilities)…
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On June 30th, the 350,000 square foot facility in Napa County was permanently closed (though some workers are staying throughout the complete transition through August). The location had operated since 1994, and the closure impacted 135 employees, who were forced to find new jobs.
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A Coca-Cola distributing site in Salinas, California is set to close on August 1st of this year. The site had been a source of employment in the area for 23 years, and its closure is impacting 81 employees.
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On May 31, 2024, a Coca-Cola plant in Dunedin, Florida, was permanently closed. It was originally scheduled to be closed in 2021 (perhaps the pandemic got in the way of the plans, which were announced in 2020), but the closure was delayed a couple of years.
Perhaps that extra time gave its 200 employees more time to line up employment options…
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Earlier this year, in January, Reyes Coca-Cola Bottling, LLC, a Coca-Cola bottler and distributor, shuttered its facility in Modesto, California.
101 employees were impacted by its closure.
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One of the largest Coca-Cola closures was set to happen in 2023, but now the plant is scheduled to stay open through this year. We don’t know when the plant in Northampton, Massachusetts is going to close for good, but when it does, 319 employees will be impacted.
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Fortunately, impacted employees will receive severance and job placement support. The lay-offs are planned well in advance, which gives the employees some time to prepare, both mentally and for future employment.
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Remember that out of over 950 facilities, the closure of a few plants isn’t significant on the business side of things. It’s very significant for the laid-off employees and their families, though.
According to Nasdaq, Coca-Cola is seeing good sales growth with “rising sales volumes, effective pricing strategies, and successful revenue growth management.”
What does that mean, given the recent closures of the plants?
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That means that Coca-Cola’s facility closures don’t seem to signify business troubles. (In fact, Costco is switching from Pepsi to Coca-Cola products in its food courts!)
However, my heart goes out to the employees impacted by these layoffs.
Have you ever been laid off from a job? What is your biggest advice to others experiencing lay-offs? Share your thoughts in the comments!
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