As part of the broader strategy to save costs, Coca Cola on Tuesday announced that it would cut 1200 jobs in the corporate center in the second half of this year. These cuts won’t be concentrated within any geographical boundary, and would be dependent on a comprehensive review by the company.

The incoming CEO of the company James Quincy, said that it would help make the company agile and lean. Coke also announced that its overall sales were down by 11% and the profits fell by 20%. This was the eighth consecutive quarter for which Coke reported a decline in its revenue.

Its bottom line was considerably hit due to the re-franchising of bottling operations in America and declining sales in Latin America, where economic conditions remain tough.

Over a span of two years, the company aims at saving $800 million. These moves are being seen as a response to the shifting consumer interest from the soft drinks to less sugary alternatives. Also, half of the savings will be reinvested back into the company, but Quincy said, “We will be a much smaller company by next year.”

"I think here the clear intent is that this [reinvestment] is more directed to some of the newer categories or some of the other categories to drive growth," he said.

Interestingly, Pepsi is reportedly doing a better job at diversifying its portfolio despite the changing consumer trends, whereas Coke’s efforts of reinvigorating its healthier beverages will only now start to bear fruits. 

James Quincy, who is currently the Chief Operating Officer would be taking over Muhtar Kent. The latter will remain with Coke as Chairman. Coke employs 100,300 people worldwide.