In an effort to save $100 million a year, Panamerican Beverages Inc. (Panamco), will streamline manufacturing, consolidate an undisclosed number of distribution centers and warehouses, eliminate 6,750 jobs, and make other changes. Panamco is the largest ...
In an effort to save $100 million a year, Panamerican Beverages Inc. (Panamco), will streamline manufacturing, consolidate an undisclosed number of distribution centers and warehouses, eliminate 6,750 jobs, and make other changes. Panamco is the largest soft-drink bottler in South America and one of the world's largest Coca-Cola bottlers. The company says it will see $50 million in savings this year -- which will be partially offset by a $40.3 million cash charge in the first quarter -- and $100 million a year thereafter. "Our goal is to substantially increase profits and cash-flow generation, as well as returns on invested capital and share owners' equity," says Francisco Snchez-Loaeza, Panamco chairman and CEO. "To do this, we have to adapt our business model to today's competitive and economic environment." Snchez-Loaeza said the job cuts will come from closings of facilities throughout the organization.
