Coca-Cola FEMSA Philippines Inc. relieved an undisclosed number of workers amid an “organizational restructuring”.
In a statement on Tuesday, the soft drinks manufacturer said this was due to “changes in the beverage industry and business landscape”, referring to the increased excise tax on sugar-sweetened beverages.
The government on Jan. 1 imposed a tax of P6 a liter on drinks using sugar and other sweeteners versus a tax of P12 on high fructose corn syrup (HFCS).
The levies, part of a broader tax reform package, will be used to fund a countrywide infrastructure development program.
“Rest assured that we will treat the people who will be affected with dignity, fairness, and respect throughout this process,” it read. “Everyone will be given career transition support, as well as separation packages that go beyond what is mandated by law.”
Coca-Cola said that the organizational structure assessment, which led to the layoffs, entailed the review of roles and responsibilities of company employees.
“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.” — Anna Gabriela A. Mogato