Thursday, January 5, 2012

Pepsi laying off employees to please investors

There was a story from Reuters regarding Pepsi cutting 4000 jobs along with making cuts to the company's pension and 401K programs. The reason given is to be able to save their earnings numbers.

This is exactly the kind of short sightedness that get corporations into bigger trouble. Most companies that let Wall Street analysts dictate their business plans by making sure the earnings numbers come first need new management.

In this particular case, there is wonderment over the economic cost benefit analysis over layoffs versus management bonus' being decreased. It is surprising that Pepsi can feel that cutting pension and 401K matching programs to employees that need them works out better than cutting the enormous bonus packages that are relatively not needed to top executives. This action should show that Pepsi is not deserving of pension investment dollars.


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farmland as an investment said...

Pepsi is an iconic company, what a terrible thing.

Penny Stock Blog said...

Small companies create many jobs. Large firms seem to only cut jobs at least in the united states.


To many companies today are short sighted. Laying off employees is often a mistake that could come back to hurt them someday.