PepsiCo will pay hundreds of millions of dollars in severance pay to laid-off workers in Texas and New York as it replaces humans with automation.
CEO Ramon Laguarta said PepsiCo is “relentlessly automating” with the “best new technologies.” In other words, reports Business Insider, the company’s four-year restructuring plan includes cutting jobs in Texas and New York. And to do so, it’s willing to pay millions in layoff severances and other employee costs.
Laguarta said that Pepsico, as a result, will become “more capable, leaner, more agile, and less bureaucratic.” And in doing so, the company expects to drive down costs and save $1 billion every year through 2023. Anonymous workers report that they’ll be out of a job by April 2019.
Which type of PepsiCo is more worthy of respect? Would you rather support an efficient, automated and highly profitable company or one that keeps more workers employed?