Pepsi Considering Layoffs, Cutting 401(k) Plan
PepsiCo announced on Thursday it is exploring the possibility of cutting around 4,000 jobs and reducing the amount it contributes to pension funds in an attempt to boost earnings. Pepsi is currently among a small number of businesses offering a pension plan and 410(k) matching. According to a report in the New York Post, Pepsi could save as much as $75 million a year by doing away with the 401(k) match.
The layoffs, which would amount to just over 1 percent of Pepsi's total workforce, would likely include a handful of jobs at its Purchase, New York headquarters, which employs about 2,000 people currently. The company employes a total of about 300,000 around the globe, however, so 4,000 would be but a drop in the bucket.
Pepsi said that the changes have not been decided, but are moves being considered under an ongoing extensive review of the company's operations. The company is looking to streamline operations and improve profit margins in an increasingly competitive global beverage market.
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