Spotlight on Business Headlines
COCA-COLA TO CUT 2,200 JOBS AS PART OF RESTRUCTURING PLAN C oca-Cola will cut about 2,200 jobs in its global workforce as part of a broader re- structuring plan that was accelerated by the coronavirus pandemic. In the United States, Coke will use layoffs and buyouts to eliminate about 1,200 jobs, account- ing for about 12% of the workforce in its home market. The news was first reported by The Wall Street Journal. In August of 2020, the beverage giant had said it would offer 4,000 workers in the U.S., Canada and Puerto Rico voluntary layoff packages. In total, Coke expects to spend $350 million to $550 million on severance costs. The job losses do not include the employees of its bottlers. GM AND FORD WON’T MANDATE COVID-19 VACCINATIONS FOR EMPLOYEES G eneral Motors will not require employees to receive Covid-19 vaccinations to return to physical office locations or continue working in manufacturing plants. The Detroit automaker joins crosstown rival Ford Motor in confirming plans for voluntary vacci - nations, even though the Equal Employment Opportunity Commission allows employers to require workers to get vaccinated. United Auto Workers President, Rory Gamble recently said he believes that none of the union’s 400,000 members should be forced to receive Covid-19 vaccinations, but he encourages the workers to be vaccinated. It would be surprising for Fiat Chrysler to break pattern from its Detroit counterparts, espe- cially regarding UAW members. The Detroit automakers combined employ nearly 550,000 people globally, including roughly 153,000 UAW members.
APHRIA, TILRAY CONFIRM DEAL TO CREATE NEW POT INDUSTRY GIANT The company’s quarterly reports indicate staff numbers have fallen from 1,479 to 840 over the year, following hundreds of layoffs last spring. A phria Inc. and Tilray Inc. confirmed early Wednesday they have agreed to join forces in a blockbuster deal uniting two of the biggest names in the legal cannabis industry. According to the news release, Aphria Chief Executive Office, Irwin Simon will lead the combined company as chairman and CEO. The combined company’s board of directors will include nine positions, with seven being occupied by Aphria appointees. Current Tilray CEO, Brendan Kennedy will occupy one of the other two seats. NEWFOUNDLAND’S HIBERNIA OFFSHORE OIL PROJECT GETS $38 MILLION IN FEDERAL AID N ewfoundland and Labrador Premier, Andrew Furey says the $38 million his gov- ernment is giving the Hibernia offshore oil project will protect about 148 jobs over 18 months. Furey recently made the announcement, saying the money comes from a pot of $320 million offered to the province by the federal govern- ment in September to bolster the floundering oil industry. The deal, which is expected to close in the second quarter of next year, is subject to standard closing requirements, including approval by at least two-thirds of votes cast by Aphria shareholders at a future special meeting. Tilray shareholders, meanwhile, will have to vote on the planned share issuance to complete the deal. The arrangement includes a $65-million recipro - cal break fee if either side walks away from the deal.
49
48
JANUARY 2021 • SPOTLIGHT ON BUSINESS MAGAZINE
SPOTLIGHT ON BUSINESS MAGAZINE • JANUARY 2021
Made with FlippingBook Publishing Software