Atlanta-based Coca-Cola Company announced Friday a major global reorganization of its workforce that will lead to thousands of job cuts and buyouts for employees in the United States and Canada.

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TickerSecurityLastChangeChange %KOCOCA-COLA COMPANY49.39+1.16+2.41%PEPPEPSICO INC.138.81+0.41+0.30%

The beverage giant said that in order to "minimize the impact" from the structural changes,  it will offer voluntary separation packages to 4,000 employees working in the continental U.S., Canada and Puerto Rico that were hired on or before Sept. 1, 2017.

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The company is forecasting its overall global severance program will cost between $350 million and $550 million.

Coke has more than 86,200 employees worldwide of which more than 10,000 were in the United States.

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"We have been on a multi-year journey to transform our organization," Chairman and CEO James Quincey said in a written statement. "The changes in our operating model will shift our marketing and drive more growth and put execution closer to customers and consumers while prioritizing a portfolio of strong brand and a disciplined innovation framework. As we implement these changes, we're continuing to evolve our organization, which will include significant changes in the structure of our workforce."

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The company also announced that nine new divisions will replace 17 business units and will focus on scaling new products while getting rid of the duplication of resources.

Coke had one of its worst quarters in its 134-year history this spring as the COVID-19 crisis closed down theaters, restaurants and sporting events. The company gets about half of its sales from public events.

Second-quarter revenue fell 28% to $7.2 billion and net income dropped 32% to $1.8 billion from a year earlier.

Coke has more than 500 brands of beverages in more than 200 countries and territories. Their portfolio includes Dasani, Minute Maid, SmartWater and Sprite.

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