April 25 (Reuters) - Coca-Cola Co said on Tuesday it would cut about 1,200 jobs as the beverage maker expands its savings target amid falling demand for fizzy drinks globally. Shares of the Dow component were up marginally at $43.39.
Coca-Cola and rival PepsiCo Inc's soda sales have taken a hit as consumers in North America and Europe increasingly shun sugary drinks.
Global soda sales fell 1 percent in the first quarter ended March 31, Coca-Cola said on Tuesday.
The Atlanta-based company said it was increasing its cost-cutting target by $800 million in annualized savings and now expects to save $3.8 billion by 2019.
Coca-Cola through the years, Coke soda
Coca-Cola through the years, Coke soda
UNITED STATES - CIRCA 1950s: Teenaged girl with bottle of Coca-Cola. (Photo by George Marks/Retrofile/Getty Images)
(GERMANY OUT) *23.03.1912-16.06.1977+Physiker, Raketenforscher, D/USA- PortrÃ¤t mit Coca-Cola-Flasche- 1963 (Photo by ullstein bild/ullstein bild via Getty Images)
FRANCE - MAY 01: Centenary of Coca-Cola In France In May, 1986. (Photo by Didier CONTANT/Gamma-Rapho via Getty Images)
BOHOL, PHILIPPINES - 1988/01/01: A lemur clings to a coke bottle. . (Photo by Roland Neveu/LightRocket via Getty Images)
Bottles of Coca-Cola, Tab, and Sprite on the shelf of a grocery store in New York City, USA, September 1988. (Photo by Barbara Alper/Getty Images)
SAN FRANCISCO - JANUARY 16: Bottles of Coca-Cola are seen on the shelf at Tower Market January 16, 2004 in San Francisco, California. Coca-Cola is being investigated by U.S. regulators over allegations raised by a former employee that it had inflated its earnings. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO - JANUARY 16: Cans of Coca-Cola are seen on the shelf at Tower Market January 16, 2004 in San Francisco, California. Coca-Cola is being investigated by U.S. regulators over allegations raised by a former employee that it had inflated its earnings. (Photo by Justin Sullivan/Getty Images)
UNITED STATES - OCTOBER 20: Bottles of Coca-Cola and Diet Coke are displayed on a shelf in an Associated Supermarket in New York Thursday, October 20, 2005. Coca-Cola Co. said third-quarter profit surged 37 percent, the biggest gain in more than a year, as sales rebounded in the U.S. and demand for Powerade sports (Photo by Ramin Talaie/Bloomberg via Getty Images)
PARK RIDGE, IL - NOVEMBER 07: 2-Liter bottles of Vanilla Coke as seen in a grocery store November 7, 2005 in Park Ridge, Illinois. Atlanta-based Coca-Cola Co. has said it plans to discontinue its Vanilla Coke in the US by the end of the year. (Photo by Tim Boyle/Getty Images)
NEW YORK - FEBRUARY 19: A general view of the new aluminum Coca-Cola bottle at Mercedes Benz Fashion Week Fall 2009 Collections at Bryant Park on February 19, 2009 in New York City (Photo by Donald Bowers/Getty Images for The Coca Cola Company)
Bottles of Coca-Cola Co.'s Coke brand soda sit on a shelf behind the bar at Smith & Wollensky in New York, U.S., on Monday, Feb. 22, 2010. Coca-Cola Co., the world's biggest soda maker, agreed to buy the North American operations of bottler Coca-Cola Enterprises Inc., more than six months after PepsiCo Inc. moved to bring its bottlers in-house to cut costs. Photographer: Daniel Acker/Bloomberg via Getty Images
LONDON, ENGLAND - MARCH 19: Rita Ora attends photocall to celebrates 100 years of the Coca-Cola Contour Bottle at the Coca-Cola Contour Centenary Bar on March 19, 2015 in London, England. (Photo by Mike Marsland/WireImage)
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The majority of the additional savings would come from the corporate job reductions, incoming Chief Executive James Quincey said on a post-earnings conference call.
The company, which also reported a smaller-than-expected quarterly profit, said it expects to reinvest at least half of the $800 million saved to mainly boost growth in its non-carbonated drink business.
"We are not too worried about this quarter's miss," RBC Capital Markets analyst Nik Modi wrote in a note.
"The important thing is that KO is raising its cost-saving estimates and we believe there is more to go."
The job cuts would start in the second half of 2017 and carry into 2018, Coca-Cola said.
The company also forecast a smaller decline in 2017 adjusted profit than it had previously expected.
Coca-Cola said on Tuesday it expects full-year adjusted profit to fall 1-3 percent, compared with the 1-4 percent decline it forecast in February.
The company is offloading much of its low-margin bottling business to reduce expenses, but costs associated with the refranchising have been higher than expected, weighing on profit.
Coca-Cola said it recorded a charge of $84 million related to the refranchising in North America in the latest quarter.
Net income attributable to the company's shareholders fell 20.3 percent to $1.18 billion, or 27 cents per share, from a year earlier.
Excluding items, the company earned 43 cents per share, missing analysts estimates by a cent, according to Thomson Reuters I/B/E/S.
Revenue fell 11.3 percent to $9.12 billion, declining for the eighth straight quarter. (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sriraj Kalluvila)