Slashdot Mirror
PepsiCo Is Laying Off Corporate Employees As the Company Commits To 'Relentlessly Automating' (businessinsider.com)
PepsiCo is kicking off a four-year restructuring plan that is expected to cost the company hundreds of millions of dollars in severance pay. "This week, PepsiCo employees in offices including Plano, Texas, and the company's headquarters in Purchase, New York, were alerted that they are being laid off," reports Business Insider, citing two people directly impacted by the layoffs.
The latest job cuts come after CFO Hugh Johnston told CNBC that the company plans to lay off workers in positions that can be automated. CEO Ramon Laguarta said on Friday that PepsiCo is "relentlessly automating and merging the best of our optimized business models with the best new thinking and technologies." From a report: This week, PepsiCo employees in offices including Plano, Texas, and the company's headquarters in Purchase, New York, were alerted that they are being laid off, according to two people who were directly impacted by the layoffs. These two workers were granted anonymity in order to speak frankly without risking professional ramifications. At least some of the workers who were alerted about layoffs will continue to work at PepsiCo until late April as they train their replacements in the coming weeks, the two workers told Business Insider.
By PepsiCo's own estimates, the company's layoffs are expected to be a multimillion-dollar project in 2019. Last Friday, PepsiCo announced in a filing with the Securities and Exchange Commission (SEC) that it is expected to incur $2.5 billion in pretax restructuring costs through 2023, with 70% of charges linked to severance and other employee costs. The company is also planning to close factories, with an additional 15% tied to plant closures and "related actions." Roughly $800 million of the $2.5 billion is expected to impact 2019 results, in addition to the $138 million that was included in 2018 results, the company said in the SEC filing.
The latest job cuts come after CFO Hugh Johnston told CNBC that the company plans to lay off workers in positions that can be automated. CEO Ramon Laguarta said on Friday that PepsiCo is "relentlessly automating and merging the best of our optimized business models with the best new thinking and technologies." From a report: This week, PepsiCo employees in offices including Plano, Texas, and the company's headquarters in Purchase, New York, were alerted that they are being laid off, according to two people who were directly impacted by the layoffs. These two workers were granted anonymity in order to speak frankly without risking professional ramifications. At least some of the workers who were alerted about layoffs will continue to work at PepsiCo until late April as they train their replacements in the coming weeks, the two workers told Business Insider.
By PepsiCo's own estimates, the company's layoffs are expected to be a multimillion-dollar project in 2019. Last Friday, PepsiCo announced in a filing with the Securities and Exchange Commission (SEC) that it is expected to incur $2.5 billion in pretax restructuring costs through 2023, with 70% of charges linked to severance and other employee costs. The company is also planning to close factories, with an additional 15% tied to plant closures and "related actions." Roughly $800 million of the $2.5 billion is expected to impact 2019 results, in addition to the $138 million that was included in 2018 results, the company said in the SEC filing.
How much talent does it take to sell diabetes-inducing sugar water anyway? "Automation" is is another word for "contractors in India".
Tired of FB/Google censorship? Visit UNCENSORED!
I am a professional chess and Go player. Fortunately for me I am safe from automation.
The funny thing is they are. Humans haven't won at chess since Kasparov lost to Deep Blue, but Carlsen is making more than a million dollars a year as the world champion and is approaching $10 million in career earnings. You'd better be in the absolute elite though, it's like all sports the top athletes bring in way more than then second-best and being 100th best is worth almost nothing.
Live today, because you never know what tomorrow brings
Sounds like a method of getting rid of all the old people working there, then in a year or two will say they failed and hire young people. Sounds like a good plan to avoid all those pesky US regulations.
You underrate the skills required by management. A good manager is nearly as rare as a good plumber. Both exist.
I think we've pushed this "anyone can grow up to be president" thing too far.