Thread regarding PepsiCo Inc. (Pepsi) layoffs

Enough is enough - stop the GCCs

Enough is enough. All these GCCs mushrooming across the globe aren’t savings, they’re a massive cost drain. On paper we pitch it as labor arbitrage. In reality, we’re bleeding money in many ways no one wants to put on a slide.

Here’s what it actually costs the company:

Duplication and rework: The same work gets done 2x, 3x, 4x across several functions and regions because no one is clear on ownership. Then we pay again to undo and redo it.

Coordination tax: Endless meetings, handoffs, time-zone ping-pong, and “alignment” calls that add zero value. Hours turn into weeks.

Quality and speed hit: Confusion over who owns what slows decisions to a crawl. We ship late, ship broken, and pay to fix it.

Attrition and morale: Good people burn out navigating the bureaucracy and leave. Replacing them costs more than we “saved.”

Leadership overhead: We keep adding layers just to manage the GCCs instead of managing the business.

Needless travel and real estate: do we even have a number of how much we spend on T&E with GCC travel as well as the real estate?

So leaders, stop hiding behind “labor arbitrage.” Wake up. Stop the endless mushrooming of GCCs. Have some common sense and dignity, and start running the company like you actually care about costs and outcomes.


by
| 106 views | | 12 replies (last 4 days ago) | Reply
Post ID: @OP+1m6m5q56c

12 replies (most recent on top)

@kd sap was not the right fit. It is obsolete 70s software monolithic cr-p.we cannot even send a correct and accurate bill to our customers. IBM. And sap must have paid someone handsomely. Sap is corrupt entity and they have been fined for their business practices.
It is not us but obsolete cr-p which was shoved down our throats.

by
| | Reply
Post ID: @tn+1m6m5q56c

@kd GCC has been mentioned as “strategic” priority in town halls many times. That shows we are so out of touch on what strategy really means. Creating unnecessary centers and hiring all over the world while fire is burning at home where once the cash cow Business was. Unreal thinking by our leaders

by
| | Reply
Post ID: @m9+1m6m5q56c

Leadership is out of touch if they think GCC is adding value. Where is the accountability for their deliverables? Why does feedback fall on deaf ears? Is SAP really this complicated we need to add so much complexity to inputting data?

by
| | Reply
Post ID: @kd+1m6m5q56c

Last years AP rollout was a disaster to say the least, years ago rollouts of this magnitude would be beta tested first, the beta test was the entire company! Pretty much brought business to a halt as no one could get a new purchase order for weeks. Touted to save $100MM in the first year not even close
Fired the small team that knew what they were doing hired a bunch of people in India and Mexico who only could tell you what their program told them to do basically useless
One example now there are 7 steps to add a new vendor and no one group controls the process what used to take a few days was taking months

by
| | Reply
Post ID: @hn+1m6m5q56c

You are so correct. Travel expenses are getting ridiculous. People from GCC are now coming to the US almost every month. I know I&O has someone visiting nearly every month. There is someone here this week who seems to be walking around meeting people, but I don’t see any clear business purpose for the visit. My point is, all this travel is a huge expense, especially when we are talking about cost reductions. It also looks like this particular trip was combined with a personal vacation around the US. Where is the accountability for these expenses?.

by
| | Reply
Post ID: @b5+1m6m5q56c

So true! Guess how the cost of GCCs were paid? Raise prices of products in NAmerica. Guess who gets impacted with high products prices? NAmerica workforce as consumers don’t buy and market stagnates.

by
| | Reply
Post ID: @b0+1m6m5q56c

@am Unfortunately, it's not a joke answer. We previously knew them as GBS/MBS, and now they're referred to as GCC. It may be more of an umbrella term, but I agree wholeheartedly with OP's observations.

by
| | Reply
Post ID: @av+1m6m5q56c

GCC = Global Capability Center. In the last few years we've set up a bunch of them in Hyderabad, Poland, Mexico City, Cairo, Shanghai, you name it.

I’m genuinely curious — how much headcount have we added in all these locations at the expense of N. America, and what real benefit are they actually driving?

@OP hit the nail on the head. While our Exec LT keeps singing the same GCC tune, they have zero clue about the chaos it’s creating everywhere.

Every year AK has “grow GCC services even more” on her PDR. Okay, but where the he-l is that work getting displaced from? What’s the REAL cost and efficiency after you factor in duplication, rework, and 24/7 alignment he-l?

No wonder N. America is completely demoralized, demotivated, and struggling. Looks like our leaders skipped Business 101 and aced Save-Your-Own-A** 101

The people who started this all GCC mess - Matthias Black and Priyaranjan Jha made their merry and moved onto to other companies to rinse and repeat the same formula elsewhere. The leaders who took their place are continuing the same sh---y mess without a true assessment if this adds value from a total cost of operations perspective

by
| | Reply
Post ID: @aq+1m6m5q56c

@aj I hope that was a joke answer. Global Capabilty Centers also once know as Global Business Solutiins (GBS). They are the solution to nothing but more problems as the OP stated. It duplicates work, slows everything down so truly is not a cost savings.

by
| | Reply
Post ID: @am+1m6m5q56c

My understanding is that GCC stands for Global Creative Center. They're now managing creative work that was previously handled by internal teams across PBUS/PEPNA (or whatever we're calling the organization these days).

by
| | Reply
Post ID: @aj+1m6m5q56c

@af global capability center

by
| | Reply
Post ID: @ag+1m6m5q56c

I might agree if I knew what a GCC was. Been around along time and never heard that one

by
| | Reply
Post ID: @af+1m6m5q56c

Post a reply

: