PepsiCo mulling over 4,000 job cuts
Global soft drinks and snacks major PepsiCo Inc is mulling over about 4,000 job cuts and reducing pension contributions in a bid to boost earnings, says a media report.
New York: Global soft drinks and snacks major PepsiCo Inc is mulling over about 4,000 job cuts and reducing pension contributions in a bid to boost earnings, says a media report.
"Embattled PepsiCo CEO Indra Nooyi is considering laying off roughly 4,000 workers and ending the company's 401(k) match in order to boost earnings," The New York Post said, citing a source.
A final decision could be made in days, the report noted.
According to the publication, a PepsiCo spokesman declined to comment on the proposed cuts.
PepsiCo currently offers a pension plan and a 401(k) match and believes offering both is more generous than its peers, the report said, adding that eliminating the 401(k) match would save PepsiCo USD 75 million.
The report said the US-based company might cut the match for those with enough seniority to be eligible for pension.
The roughly 4,000 layoffs, amounting to a little more than 1 per cent of its payroll, will include a modest number of workers at its headquarters in Purchase, the report noted.
PepsiCo employs about 3,00,000 workers globally, 2,000 of whom are in Purchase, it added.
The report said that PepsiCo is also mulling a freeze on raises for its salaried employees.