Coca-Cola Israel to fire 150 people due to coronavirus impact

Much of Coca-Cola Israel's earnings comes from cafes, restaurants, bars, events and hotels which were all closed during the coronavirus outbreak.

Coca Cola (photo credit: REUTERS)
Coca Cola
(photo credit: REUTERS)
In light of the coronavirus crisis, the Central Bottling Company (Coca-Cola Israel) is planning to fire about 150 workers, making up about 3% of their workforce, according to Calcalist.
About two months ago, some 600 employees were put on unpaid leave, most of which will return to work at the end of June.
The layoffs will take place throughout the companies under Coca-Cola Israel, which includes Neviot, Prigat, Tera, Carlsberg, Tuburg and Tabor Wineries.
Much of Coca-Cola Israel's earnings comes from cafes, restaurants, bars, events and hotels, which were closed during the peak of the coronavirus outbreak. The closure of these venues impacted an estimated 40% of the company's earnings, and even as these venues reopen, the company's earnings haven't returned to what they were before the outbreak and are at an estimated 20% lower than in previous years.
One of the reasons behind the continued losses in earnings is due to the fact that an estimated 30% of restaurants in Israel were forced to close permanently due to the economic impact of the coronavirus and those that did reopen till haven't returned to the earnings they had before the outbreak, according to Calcalist.
The continued closure of movie theaters, live events and many flights has also impacted the company's earnings.
The company also announced wage cuts throughout the company, with management having a 10% pay cut and those earning NIS 15,000 and up having their pay cut by 5%. Those who were put on unpaid leave received a grant of NIS 3,000.