PepsiCo to tighten its financial belt amid flat profits

PURCHASE - Purchase-based PepsiCo may be looking into the possibility of laying off 4,000 of its workers as part of a plan to put itself back on the road to profitability.

The company is also allegedly planning to freeze workers' salaries, cut contributions to pension plans and stop matching employees' contributions into 401(k) plans.

News 12 financial analyst Bob Plunkett says the company can save an estimated $78 million a year on the cuts to the 401(k) program alone.

"Like all companies in today's environment, we are evaluating efficiencies in all areas of our operations, including employment levels and benefits," a PepsiCo spokesperson said in a statement.

The statement goes on to say, however, that reports of potential layoffs and benefit cuts contain information that is "inaccurate," and that PepsiCo's employees would be the first to learn about any changes.

PepsiCo employs about 300,000 people globally, about 2,000 of them at the corporate headquarters in Purchase and another 900 at the bottling headquarters in Somers.

So far, no final decision has been made on the layoffs by PepsiCo.

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