Coca-Cola Bottling Arm HCCB to Lay Off 300 Employees in India Amid Profit Slump

In a move to recalibrate its business operations, Hindustan Coca-Cola Beverages (HCCB), the bottling arm of Coca-Cola in India, has initiated a workforce reduction affecting approximately 300 employees. The decision comes as the company seeks to boost profitability and streamline its internal structures under new leadership.

Restructuring Under New Leadership

The layoffs represent roughly 4% to 6% of HCCB’s 5,000-strong workforce in India. The decision follows the appointment of Hemant Rupani as the new Chief Executive Officer in July 2025. Rupani, a former veteran of Mondelez International, has reportedly been tasked with simplifying the company’s operating model to ensure long-term agility.

An HCCB spokesperson characterized the move as a routine business assessment:

"Staying in sync with evolving business needs requires us to re-evaluate capabilities, structures, and take corrective actions where necessary. These assessments are carried out from time to time to remain competitive and efficient."

The "Why" Behind the Layoffs

Several internal and external factors have contributed to this "profitability push":

1. Sharp Profit Decline: Regulatory filings reveal that HCCB’s net profit plummeted by 73% to ₹756.64 crore in FY25. Revenue also saw a 9% dip, totaling ₹12,751.29 crore.
2. Territory Divestment: Over the past year, HCCB has been shifting toward a "franchise-led model." It sold bottling operations in Rajasthan, Bihar, the North-East, and parts of West Bengal to independent partners like SLMG Beverages and Moon Beverages.
3. Climate Impact: Unseasonal and heavy rainfall during the peak summer months (March–September) severely dampened demand for aerated drinks and packaged water, impacting the company's strongest sales quarter.
4. Operational Efficiency: The layoffs are spread across multiple departments, including sales, supply chain, distribution, and bottling operations at its 15 manufacturing units.

Impact and Future Outlook

While the company describes the downsizing as "minor in scale and non-disruptive," it marks a significant shift in how the FMCG giant manages its cost structures. Despite the job cuts, the broader Coca-Cola system in India remains bullish. Recently, major bottling partners announced a combined investment of over ₹25,000 crore to expand infrastructure, which is expected to create thousands of indirect jobs over the next few years.

The company has emphasized that it will provide support to the affected individuals during this transition, though specific severance details have not been publicly disclosed.