President Trump drinks 12 cans of Diet Coke a day.
But, when he thinks about the soft drink giant taking the fizz out of his promises, maybe he’ll have a Coke…and a frown.
Hiking Dividends, Not Paychecks. Together, with many major corporations, Coca-Cola may have given Trump the caffeine jitters last fall. After he promised that his tax cuts would raise wages and create jobs, Coca-Cola joined Cisco, Pfizer, and other companies in announcing it would boost shareholders’ dividends, not workers’ paychecks. And Coke kept its word, rewarding its investors, not its employees.
More Layoffs. After wiping out 1,200 jobs in 2017, Coke is continuing its layoffs this year. The company is pink-slipping 350 employees in its home base of Atlanta, while closing its manufacturing plant in Okmulgee, Oklahoma, and cutting back its bottling facility in Oklahoma City, costing a total of 246 jobs. All these layoffs will save Coke $800 million this year.
Pocketing Tax Breaks. Coke finished last year with solid growth, and, thanks to Trump’s tax law, its tax rate will fall from 26 to 21 percent. Moreover, it’s bringing foreign earnings home at reduced rates.
Yes, Coke is still a “classic” money-maker. But, in spite of its corporate tax cuts, the company that broadcasts TV spots with picnics and parties isn’t inviting its employees to the festivities.