Bloomberg News

Pepsico Said to Plan Job Cuts to Boost Profits as Stock Lags

January 09, 2012

Jan. 5 (Bloomberg) -- PepsiCo Inc. may cut jobs to boost earnings, a person familiar with the plans said.

The company, led by Chief Executive Officer Indra Nooyi, hasn’t determined how many of its 300,000 global employees will be eliminated, said the person, who asked not to be identified because the plans are private. The cuts will be less than the 4,000 reported by the New York Post, the person said.

PepsiCo announced Nov. 8 that it would extend a review of its 2012 and long-term business plans after costs soared and North America beverage sales stagnated. PepsiCo shares rose 1.6 percent last year, compared with a 6.4 percent gain by Coca-Cola Co., prompting calls for the company to spin off its beverages unit to boost returns.

PepsiCo will not eliminate its 401K match for all employees as reported earlier by the New York Post, the person said. The company also has no plans to freeze salaries, the person said. PepsiCo is considering whether some salaried employees will continue to receive both a pension and 401K match, the person said.

--Editors: Robin Ajello, Peter Elstrom

To contact the reporter on this story: Duane D. Stanford in Atlanta at dstanford2@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net


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