PepsiCo has denied reports that it is looking to cut around 4,000 jobs and reduce pension contributions in a bid to boost earnings.
The US food and beverage giant is said to be considering making “a modest number” of job cuts at its headquarters in Purchase, New York, according to The New York Post today (5 January). It is not clear where the other cuts will be made.
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Citing “sources close to the situation”, the New York Post added that PepsiCo is also looking at reducing pension contributions. The firm currently offers a pension plan and a 401k match, and believes that offering both is “more generous than its peers”. Eliminating the match would save the company US$75m, the report noted.
The New York Post added that PepsiCo is also considering a freeze on salary increases in a bid to raise cash.
However, a spokesperson for PepsiCo told just-drinks that the reports are “innacurate”.
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“Like all companies are doing in today’s environment and as we’ve said since the bottler integration and during our ongoing business review, we are evaluating efficiencies in all areas of our operations – including employment levels and benefits,” the spokesperson said.
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By GlobalData“As it relates to benefits, as part of our annual review, we work to optimise benefits for employees and the company, and provide competitive benefit levels,” he added. “Information contained in certain media reports is inaccurate and any changes affecting our employees will be communicated to them first.”
This is not the first time the firm has been linked to major job cut reports. Last month, The New York Post reported that the firm was considering cutting up to 1,000 jobs in order to increase its marketing budget.
While PepsiCo is in the process of undertaking a strategic review of its business, there continues to be speculation of a potential split of PepsiCo’s food and drinks business and internal unrest over the lack of a potential successor to CEO Indra Nooyi.
PepsiCo employs around 300,000 workers globally, 2,000 of which are employed at the firm’s headquarters.
