Truth About Managing People ... and Nothing but the Truth, The

Chapter 38. Listen to the Grapevine

In the fall of 2000, the rumor mill was especially active at Coca-Cola’s Atlanta headquarters. The company was in the midst of a major reorganization that had included 5,200 layoffs worldwide earlier in the year. Rumors were saying that key executives were leaving, that there were ongoing turf wars among senior executives, and that more layoffs were pending. These rumors were beginning to seriously undermine morale at Coke. In an attempt to shut down the rumor mill, James Chestnut, the company’s executive vice president, tried to set things straight. He acknowledged that the company’s senior management hadn’t done a good enough job of telling employees about the changes that were taking place. He pledged “better ...