Coca-Cola Beverages South Africa (CCBSA) is set to retrench about 680 employees and shut down two of its plants in Bloemfontein and East London, deepening South Africa’s growing unemployment crisis.
The company says the move is part of a restructuring plan driven by financial pressures, Business Insider Africa reports.
The Food and Allied Workers Union (FAWU) confirmed to SABC that it had received formal notice of the retrenchments under section 189 of the Labour Relations Act.
According to the union, the majority of affected workers are cleaning staff—nearly 9% of CCBSA’s 7,700-person workforce in the country.
FAWU has pushed back strongly against the decision, accusing the company of bypassing due process by offering separation packages before union consultations.
“These retrenchments are less about poverty and more about realigning the business,” the union argued, stressing that cleaning staff are vital to food and beverage production, with job cuts likely to compromise operational safety.
Responding to the backlash, CCBSA’s Head of Communication, Motshidisi Mokwena, told IOL that consultations with unions and employees had already begun.
“Our priority is to support affected colleagues with fairness, transparency, and compassion during this process. No final decision has been made,” she said.
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The retrenchments add to a wave of corporate cutbacks in South Africa. Ford Motor Company South Africa is preparing to shed 474 jobs, Goodyear has already cut 900 positions, and Glencore has issued notices that could affect more than 3,000 workers.
The timing of Coca-Cola’s decision has drawn attention, as it follows a July 2025 announcement of a R365 million investment in a high-speed bottling line at its Midrand plant.
While the company cited growing consumer demand as the reason for that expansion, unions say the parallel job cuts highlight the tension between automation-driven efficiency and employment security.
The developments come against a backdrop of strained U.S.–South Africa trade relations, tariff disputes, rising energy costs, and logistics bottlenecks—all factors that have dampened investor confidence and pushed multinationals to scale back operations in the country.
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