PepsiCo Defies Fears of Consumer Slowdown With Strong Earnings and Forecast
New York TimesMAR 25 2023
PepsiCo's layoffs are not a unique response to the post-pandemic reset. Recession fears are forcing multinational companies to implement broad restructuring to streamline their businesses and, unfortunately, layoffs are essential to cutting operating expenses and achieving more efficient growth. Sacking a talented workforce is difficult, and should only be resorted to if there are no alternatives.
With their earnings, sales, and revenue skyrocketing, it looks suspicious that companies like PepsiCo are claiming layoffs are the only viable way to simplify their organization or restructure their business. Most likely, the employees are paying the price of poor leadership, investors' greed, and irrational business decisions. This is typical of companies at large putting much more pressure on their existing portfolio to cut costs and quickly reach profitability.