The pressure on Indra Nooyi continues to mount as the embattled PepsiCo CEO is considering plans to lay off roughly 4,000 workers and end the company’s 401(k) match in order to boost profits and increase shareholder value, according to The New York Post. The Post – which reported last month that the cola giant was preparing to lay off about 1,000 workers – noted that a final decision on the moves could come within a matter of days, citing sources close to matter.
The decision to lay off 4,000 workers – amounting to just over 1 percent of PepsiCo’s global workforce – would include a “modest number” of employees at the company’s Purchase, NY, headquarters. While the savings from such a move were not disclosed, PepsiCo estimates that eliminating its 401(k) match would save the company $75 million, according to one source. PepsiCo is also believed to be considering a freeze on raises for its salaried employees, though that move is thought to be less likely to occur.
According to Bloomberg News, cuts may indeed be on the way, but they will be less than the 4,000 reported by the Post.
Nooyi has consistently been the target of some PepsiCo board members and investors displeased at the company’s sluggish growth during her five-year reign. PepsiCo’s share price has grown by only 2.4 percent since 2007, and many are pushing for the cola giant to split its beverage and snack food business units into two separate companies. However, company executives point out that the two divisions are closely tied and would make a split difficult.