In the 2024 10K on page 50, the 2019 Productivity Plan was adjusted to end in 2030 vs 2024, and anticipated costs for layoffs increased from $3.65B to $6.15B. And they expect to spend $900M in 2025 as opposed to just over $700M in 2024.
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Best decision I've made in recent years with Pepsi is to take the VRP. Good luck, everyone!
A lot of this is to account for the sector consolidation that is happening this year (PFNA/PBNA, combining global sectors) and the redundancy of horizontal roles that will be eliminated. That being said, layoffs are going to be big and it is going to be ongoing throughout the year as the new org structure and operating models coalesce. If you take this at face value, which you should, $6.1 Billion is A LOT of people being eliminated through 2030. Not all of that money is in the form of severance, but it still amounts to a massive reduction in work force.
Expect cuts to be deep this year…$200 million more in restructuring planned vs last year. And dont expect to get it all wrapped up in a neat little bow over the next 2 weeks. This will be ongoing. There is a reason why people are saying “Take me! Take me!”
This is not a good work environment right now and hasnt been for a while. Nothing is getting done and people are out for themselves. It’s near impossible to bring your full self to work and be productive when you know you have a target on your back.
This post and the one that details what is currently in the financial forecast / plan are THE posts to really listen to. It doesn’t matter if it’s next week or next month or next year. It is public disclosure now that we intend to lay people off for many years to come and spend billions doing it. Expect outsourcing and automation and near shoring to Mexico.
Pay attention to this. They are telling you what they are going to do. We are ALL on a list somewhere and your severance is budgeted in these numbers. It’s just a matter of when.