Coca-Cola PH laying off workers due to restructuring

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Metro Manila (CNN Philippines, February 7) — Coca-Cola FEMSA Philippines, Inc. has confirmed it is laying off workers due to restructuring.

In a statement, it said it is undergoing an "organizational structure assessment," but did not state how many employees would be laid off.

It said the restructuring comes in the light of recent developments within the beverage industry and the business landscape.

"The restructuring has been a very difficult decision. It was carried out only after an exhaustive and conscientious assessment of the evolving regulatory environment, our operational efficiency, and consequent performance in the market," it said.

The company assured those affected by the restructuring would be treated with "dignity, fairness, and respect."

"Everyone will be given career transition support, as well as separation packages that go beyond what is mandated by law."

The restructuring comes as the country imposes a hefty tax on sweetened beverages. The recently-enacted tax reform law imposes a ₱6 per liter for beverages using caloric and non-caloric sweeteners and ₱12 per liter for beverages using high fructose corn syrup.

READ: Duterte signs tax reform bill, 2018 budget into law

The company, however, made no mention of the Tax Reform for Acceleration and Inclusion (TRAIN) law in its statement.

Coca Cola FEMSA Philippines is the largest franchise bottler of Coca-Cola products in the world. According to its website it has 15,306 employees, 19 bottling plants and 52 distribution centers in the country.

The lay-offs also come as the Department of Labor and Employment recorded some 424 companies that advised termination of employees in Metro Manila in January 2018. It recorded 6,644 employees terminated in the region.