Coca-Cola Beverages South Africa (CCBSA) is preparing to cut up to 680 jobs and close two of its plants, joining a growing list of multinational firms reducing their operations in the country.
The Food and Allied Workers Union (FAWU) confirmed to SABC that it had received notice of the company’s plan to carry out retrenchments under section 189 of the Labour Relations Act.
The cuts would primarily affect cleaning staff, who make up nearly 9% of CCBSA’s 7,700-strong workforce in South Africa.
The company has cited financial pressures as the driving force behind its decision, which includes shutting down plants in Bloemfontein and East London as part of a wider restructuring plan.
FAWU, however, has pushed back against the move, saying that offering separation packages to employees before consultation with unions is unlawful.
The union has also questioned the rationale behind the retrenchments, arguing that they are less about poverty and more about “realigning the business.”
It emphasized that cleaning staff play a vital role in food and beverage production and warned that their removal could undermine both safety and output.
FAWU has vowed to challenge the company’s decision.
In response, Coca-Cola’s Head of Communication, Motshidisi Mokwena, told IOL that the company is adapting to shifts in the industry in ways that may lead to job losses.
She added that talks with unions and affected employees had already started and promised that the process would be conducted with integrity.
“We have started a consultation process with unions and non-unionised employees who may be impacted.
Our priority is to support affected colleagues with fairness, transparency, and compassion during this process.
Consultations are underway, and no final decision has been made,” Mokwena said.
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The looming retrenchments come against the backdrop of widespread job losses across South Africa.
Ford Motor Company South Africa is preparing to cut 474 jobs, while Goodyear South Africa has already announced 900 job cuts this year.
Mining giant Glencore has also issued retrenchment notices that could affect more than 3,000 workers.
With many South Africans supporting extended families, each retrenchment is expected to have ripple effects on households and communities far beyond the individual workers.
CCBSA’s decision also comes just months after it announced a major investment to expand production.
In July 2025, the company invested R365 million in a high-speed bottling line at its Midrand plant, designed to produce 72,000 bottles per hour, citing growing consumer demand at the time.
This juxtaposition of cutting jobs while expanding capacity through automation underscores the tension between boosting corporate efficiency and preserving local employment.
Coca-Cola Beverages South Africa is part of Coca-Cola Beverages Africa (CCBA), which is majority-owned by The Coca-Cola Company along with Gutsche Family Investments (GFI).
While the group continues to highlight its growth ambitions in Africa, unions remain cautious, warning that expansion often coincides with mergers, efficiency drives, and ultimately, job losses.
The retrenchments are also unfolding amid South Africa’s uneasy trade relations with the United States.
Washington has repeatedly pressed Pretoria on issues ranging from agricultural tariffs to steel and aluminum quotas, as well as its access to U.S. markets under the African Growth and Opportunity Act (AGOA).
South Africa’s reluctance to align fully with Western foreign policy positions has led to periodic threats from Washington to restrict or revoke trade privileges.
For global companies, this climate of uncertainty compounds other challenges such as high electricity costs, inefficiencies at ports, and inconsistent policy direction, all of which weaken investor confidence and make scaling down or pulling out of the market increasingly attractive.
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