Panamco To Reorganize, Eliminate 6,750 Jobs

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.