Coca-Cola Beverages South Africa (CCBSA) has announced a major restructuring plan that could see more than 680 employees lose their jobs. The company confirmed its intention to close production facilities in Bloemfontein and East London as part of an operational streamlining strategy.
According to CCBSA, the decision comes after a review of its supply chain network, aimed at improving efficiency and reducing costs in a highly competitive beverage market. The closures will affect both permanent and contract staff, with unions already voicing concern about the scale of the impact on workers and surrounding communities.
“While these are extremely difficult decisions, they are necessary to ensure long-term business sustainability,” the company said in a statement. “We remain committed to engaging with all stakeholders, including employees, labour representatives, and government, to explore alternatives and to minimize the impact where possible.”
The potential retrenchments are expected to have a ripple effect on local economies, particularly in the Free State and Eastern Cape, where the two plants have been key employers for decades.
Labour unions have criticized the move, calling it a blow to job security in regions already grappling with high unemployment. Negotiations between CCBSA management and organized labour are set to continue in the coming weeks.
If the plan proceeds, production will be consolidated into larger plants in other provinces, with CCBSA saying this will strengthen its distribution network and position it for future growth.