Global bottling giant to cut 680 jobs, shut down two plants in South Africa

The Food and Allied Workers Union (FAWU) told SABC that it had received notice of the company’s intentions to retrench workers under section 189 of the Labour Relations Act. According to the union, most of the affected staff are cleaning workers, representing nearly 9% of the company’s 7,700-person workforce in South Africa.

CCBSA has cited financial constraints as the primary reason for the decision and plans to close plants in Bloemfontein and East London as part of a restructuring drive.

FAWU has raised concerns about the retrenchment process, arguing that offers of separation packages to employees before consultations with unions are unlawful.

The union also dismissed the company’s justification, saying the retrenchments are less about poverty and more about “realigning the business.”

Cleaning staff, FAWU stressed, are integral to food and beverage production, and cutting them will have broader consequences for operational safety and output. The union has vowed to challenge the retrenchments..

Coca-Cola’s Head of Communication, Motshidisi Mokwena, told IOL that the company was adjusting to changing industry conditions in ways that could unfortunately lead to job losses, adding that consultations with unions and affected employees had already begun, with a pledge to handle the process fairly and transparently.

“We have started a consultation process with unions and non-unionised employees who may be impacted. Our priority is to support affected colleagues with fairness, transparency, and compassion during this process. Consultations are underway, and no final decision has been made” she noted.

The Coca-Cola retrenchments are part of a wave of job cuts hitting South Africa’s struggling economy. Ford Motor Company South Africa is preparing to cut 474 jobs, while Goodyear South Africa announced 900 job losses at its plants earlier this year.

Mining giant Glencore has issued retrenchment notices that could affect more than 3,000 workers, further adding to the unemployment crisis.

The impact extends beyond those directly affected. With South Africa’s extended family structures, every retrenched worker often supports multiple dependents, amplifying the social and economic fallout across communities.

The decision by CCBSA to retrench workers comes just months after the company announced an expansion and investment drive. In July 2025, CCBSA invested R365 million in a new high-speed bottling line at its Midrand plant, capable of producing 72,000 bottles per hour. At the time, the company said the move was to meet growing consumer demand.

This contradiction, cutting jobs while investing in automation and production, highlights the tension between corporate efficiency and local employment.

Coca-Cola Beverages South Africa is a subsidiary of Coca-Cola Beverages Africa (CCBA), which is majority-owned by The Coca-Cola Company and partly by Gutsche Family Investments (GFI).

While the group has “ambitious growth plans” in Africa, unions remain wary that expansions often coincide with mergers, efficiency drives, and subsequent layoffs.

Washington has long pressed Pretoria over issues such as agricultural tariffs, steel and aluminum quotas, and preferential access under the African Growth and Opportunity Act (AGOA).

South Africa’s tariff regime and its political positioning, particularly its refusal to align fully with Western foreign policy priorities, have led to periodic threats from Washington to restrict or revoke trade privileges.

For local industries, this uncertainty creates an added layer of risk, making South Africa less attractive to multinational companies who rely on stable export frameworks to justify long-term investments.

The strain with the U.S. has coincided with weakening investor confidence, rising electricity costs, logistical bottlenecks at ports, and erratic policy signals, factors that collectively drive international firms to scale down or exit the market.