Coca-Cola warns of 130 job cuts

Coca-Cola has today announced it may close its warehousing and distribution facilities in the Republic in a move that would lead…

Coca-Cola has today announced it may close its warehousing and distribution facilities in the Republic in a move that would lead to the loss of 130 jobs.

In a statement issued today, Coca-Cola HBC Ireland said it had undertaken a review of its logistics infrastructure and would now be entering a consultation process with staff.

Coca-Cola said the review found operational cost of it logistics system is "exceptionally high" when measured against the industry in Ireland and other comparable countries within the group.

"This cost base is not sustainable and decisive action is needed in the interests of the future viability of the business. After examining of various options, the most viable solution identified would be to fully outsource logistic services to expert Irish third party logistic providers. Much of the company’s distribution operation is already managed by expert third party providers," the company said.

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If this option was taken, Coca-Cola said it would lead to some 130 warehousing and distribution employees losing their jobs in in Dublin, Cork, Tuam, Tipperary, Waterford and Killarney.

The company said it would consider all options presented with employees and their representatives.

The soft drink has been bottled and distributed in Ireland for more than half a century, and Coca-Cola HBC Ireland and Coca-Cola HBC Northern Ireland Ltd employs 1,250 people directly on the island of Ireland.

In 2009, Coca-Cola Bottlers Ireland changed its name to Coca-Cola HBC Ireland to reflect its link with the Coca-Cola Hellenic Bottling Company, of which it has been a wholly owned subsidiary since 2001.

In 2008, the company opened a manufacturing plant opened at Knockmore Hill, Lisburn, Co Antrim, in what was an investment of €130 million.