Coca-Cola Amatil slashes 260 jobs

BOTTLING company Coca-Cola Amatil will axe 260 jobs as it undertakes a $100 million cost-cutting campaign.

The bottling company is undertaking a $100 million cost-cutting campaign.

COCA-COLA Amatil will axe 260 jobs as it undertakes a $100 million cost-cutting campaign.

In a statement to the Australian Securities Exchange this morning, CCA group managing director Alison Watkins said the majority of the cuts, to “non-frontline positions”, would take effect in 2015.

“This latest restructure, together with cost initiatives already in train, gives us a high level of confidence we will achieve our savings targets,” she said.

The $100 million in savings, first outlined in August, will come from back-office activities in human resources, finance and IT, as a result of automation.

The majority of the cuts will fall in Sydney.

A CCA spokeswoman said all impacted staff would be treated with the “utmost care and respect”. “Many of them we are hoping will go as a result of natural attrition,” she said.

“But obviously we’re dealing with them very sensitively and wherever possible will reach mutual agreement with people — voluntary redundancies, things like that.”

While trading conditions in Australia continue to be challenging, Ms Watkins said CCA maintains its forecast of second-half group earnings to outperform first-half earnings of $316.7 million, before significant items.

She said solid progress had been made in growth initiatives to strengthen its brands. She said:

“We have a great line-up of new product launches and marketing initiatives including the launch of Coke Life in the first half of 2015.”

The $100 million savings plan coincided with the company’s first half net profit for 2014/15 falling 16 per cent. The company’s Australian beverages business has been hit by weak consumer sentiment and aggressive competition.

Its Indonesian business also suffered a drop in earnings amid increased competition and currency movements.

But the company is pushing on with plans, announced in October and backed by its parent The Coca-Cola Company, which owns 29 per cent of CCA, to expand in Indonesia.

CCA’s stable of brands includes Coca-Cola, Mount Franklin, SPC Goulburn Valley, IXL, Grinders Coffee, Neverfail. It also has an interest in Jim Beam, Canadian Club, Makers Mark and Galliano.

CCA employs more than 14,000 people and around 5000 in Australia.