PepsiCo Inc is considering cutting about 4,000 jobs and reducing pension contributions in order to boost its earnings, the New York Post said Thursday, citing sources close to the situation.
The company currently offers a pension plan and matches contributions to 401(k) retirement savings accounts, and believes that by offering both it is more generous than its peers, a source told the Post.
Eliminating the 401(k) match would save the company $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 headquarters in Purchase, N.Y., the Post said.
The company employs about 300,000 workers globally, 2,000 of whom are in Purchase, according to the Post.
A PepsiCo spokesman said that any changes affecting employees would be communicated to the employees first. The company, like most consumer products companies, has been looking to find ways to operate more efficiently, including employment levels and benefits, the spokesman said.
As it relates to benefits, as part of our annual review, we work to optimize benefits for employees and the company, and provide competitive benefit levels, the spokesman, Jeff Dahncke, said. Information contained in certain media reports is inaccurate and any changes affecting our employees will be communicated to them first.
PepsiCo shares fell 53 cents to $66.21 on Thursday on the New York Stock Exchange.
(Reporting by Sakthi Prasad in Bangalore and Brad Dorfman in Chicago; Editing by Gary Hill)