Pepsi Mulls 4,000 Job Cuts: Report
PepsiCo Inc (PEP.N) is considering cutting about 4,000 jobs and reducing pension contributions in order to boost its earnings, the New York Post said, citing sources close to the situation.
Pepsi currently offers a pension plan and a scheme where it matches contributions to 401(k) retirement savings accounts, and believes offering both is more generous than its peers, a source told the Post.
Eliminating the 401(k) match would save Pepsi $75 million, according to the newspaper.
The job cuts, amounting to a little more than 1 percent of the company's payroll, will include a modest number of workers at its Purchase, New York headquarters, the Post said.
Pepsi employs about 300,000 workers globally, 2,000 of whom are in Purchase, according to the NY Post.
A Pepsi spokesman declined to comment on the proposed cuts to the New York Post. The company could not immediately be reached for comment by Reuters.