Hindustan Coca-Cola Beverages (HCCB), the bottling arm of Coca-Cola in India, is preparing to cut around 300 jobs as part of an internal exercise aimed at improving margins and sharpening efficiency, according to people familiar with the development.

The move, which has been communicated to employees in recent weeks, will impact roughly 4–6% of HCCB’s workforce. The company currently employs about 5,000 people and runs 15 manufacturing facilities across the country, producing and distributing brands such as Coca-Cola, Thums Up, Sprite, Minute Maid and Kinley.

The planned reductions are spread across multiple functions, including sales, supply chain, distribution and bottling operations at plants. Sources said the changes are being implemented quietly, and those aware of the matter declined to be named as they are not authorised to speak publicly.

In a statement, an HCCB spokesperson said the company routinely reviews its organisational structure to remain competitive. The spokesperson described the job cuts as limited in scale and said they would not disrupt business operations, adding that such adjustments are necessary to align with changing business requirements.

The restructuring is taking place under new leadership. Earlier this year, HCCB appointed Hemant Rupani as its chief executive officer, replacing Juan Pablo Rodriguez. Rupani previously held senior roles at global food and beverage major Mondelez International.

The workforce rationalisation comes against the backdrop of a sharp drop in financial performance. Regulatory filings show that HCCB’s net profit declined by 73% in FY25 to Rs 756.64 crore, while revenue from operations fell 9% to Rs 12,751.29 crore.

The company has attributed part of this decline to a high comparison base in the previous financial year, when it divested bottling operations in regions such as Rajasthan, Bihar, the North-East and parts of West Bengal. These assets were sold to franchise bottlers including Moon Beverages, Kandhari Global Beverages and SLMG Beverages.

Coca-Cola operates in India through a franchise-led model, supplying beverage concentrate to independent bottlers who handle manufacturing and distribution. As a result, changes in bottling ownership can significantly influence reported revenues and profits.

Challenging market conditions have also weighed on performance. Beverage demand remained subdued in FY25 due to erratic and excessive rainfall, which disrupted the crucial summer sales period. The months between April and June typically contribute the largest share of annual sales for the soft drinks industry, which is estimated to be worth around Rs 60,000 crore in India.

Lower-than-expected consumption during these peak months has affected most beverage makers, including HCCB, prompting companies to tighten costs and reassess operations.