PepsiCo’s massive employee layoffs: some thoughts
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I’m always fascinated by the food industry’s rationale for massive layoffs.
PepsiCo, for example.
The Wall Street Journal report’s Pepsi’s rationale:
PepsiCo Inc. PEP -0.37% is laying off workers at the headquarters of its North American snacks and beverages divisions, a signal that corporate belt-tightening is extending beyond tech and media, according to people familiar with the matter and documents reviewed by The Wall Street Journal…In a memo sent to staff that was viewed by the Journal, PepsiCo told employees that the layoffs were intended “to simplify the organization so we can operate more efficiently.”
PepsiCo reported a 12% increase in revenues last year.
Its global revenues came close to $80 billion in 2021.
PepsiCo Beverages North America’s operating profit has recently decreased by 10%,
primarily reflecting certain operating cost increases, including incremental transportation costs, a 37-percentage-point impact of higher commodity costs and higher advertising and marketing expenses. These impacts were partially offset by net revenue growth and productivity savings.
It paid its CEO $25,506,607 in 2021. This is 500 times more than the median employee salary of $52,000.
That’s how the system works.
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