South Africa’s job industry is in trouble as several companies announce job reductions. Ford Motor South Africa, Glencore, ArcelorMittal South Africa, and Goodyear South Africa have already announced the layoffs. And now joins Coca-Cola Beverages South Africa (CCBSA). The company is planning to cut over 600 jobs and is in talks with worker unions on the same. However, nothing is final yet, as the union is fighting back and negotiations are underway. So, why is the company laying off now? Is CCBSA cutting some costs, or is it just a restructuring? How will this impact South Africa’s severe unemployment problem? Learn more.
Why Is Coca-Cola Beverages South Africa (CCBSA) Laying Off?
According to CCBSA, it is planning to lay off 600 workers due to “evolving industry dynamics,” meaning it is restructuring itself to fit the new economic conditions.
CCBSA Quoted by Business Day, CCBSA said, “In response to evolving industry dynamics, Coca-Cola Beverages SA intends to make adjustments to its organisation that, if implemented, may result in some roles being impacted and may, unfortunately, result in job losses.”
Industry experts are concerned and point fingers at:
- Higher costs (costs of raw materials, transport, etc.).
- Weak consumer spending (people in South Africa are buying less because of economic struggles).
- Frequent power shortages (the load shedding is making production difficult and expensive in South Africa).
Food and Allied Workers Union Fighting Back
- If the layoffs happen, the economic condition in South Africa could worsen. Coca-Cola Beverages South Africa (CCBSA) sent a notice on September 2, 2025, to the Food and Allied Workers Union (Fawu).
- The notice said it will lay off about 600 of its employees.
- Fawu is strongly against the move and is fighting back as it represents many hardworking Coca-Cola workers.
The Union’s Stance
- Fawu firmly believes that the layoffs can push South Africa’s already severe unemployment into more trouble.
- Apparently, 1 in every 3 people in South Africa struggles to find a job. According to Reuters, the country’s unemployment rose to 32.9%.
- This is not the first time the union in the past has also criticized Coca-Cola for its cost-cutting activities and neglecting workers’ livelihood.
Bigger Picture
- Notably, CCBSA is part of Coca-Cola Beverages Africa (CCBA). It is the eighth-largest Coca-Cola bottler in terms of revenue globally.
- The company operates in several African countries, and especially in South Africa, CCBSA employs thousands of South Africans.
What Happens Next?
According to the South African companies, they can’t randomly lay off employees. There is a process in place; companies must consult with the unions first.
While discussing the issue with the unions, the companies have to be open to:
- Redeploying workers,
- Voluntary severance packages,
- And other cost-saving measures.
Having said all that, the law can’t guarantee that companies won’t lay off. It is hard to avoid layoffs, but what it can guarantee is having a voice.
Right now, in Coca-Cola’s case, the negotiations between CCBSA and Fawu are underway, and 600 people’s jobs are at risk.
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