Pepsico announced that they will be laying off less than one-percent of their 110,000 employees or up to 1100 workers if you do the math. This is said to be part of a part of a previously-announced and ongoing productivity program.
Chairman and CEO Indra Nooyi was quick to defend the Pepsico's 2017 reported results, saying, "These are impressive results, particularly in light of the challenges posed by global megatrends impacting our industry from macroeconomic and political volatility, to the continued rebalancing of the economic world, to shifting consumer preferences and increasing demand for healthier products, the disruption of retail costs by the rapid growth of e-commerce and the blurring of channel lines" .
Pepsico posted a loss of $710 million in the three months ending Dec. 30, 2017 -- but was majorly impacted by the Trump tax reform which led to a $2.5 billion provisional net tax expense. Whether or not Pepsico chooses to repatriate future money from abroad and take advantage of lowered taxes remains to be seen.
While the Trump tax proposal will result in a lower tax rate on U.S. earnings, it does impose a one-time mandatory tax on international accumulated earnings that existed at the end of 2017 -- regardless of whether or not an entity decides to repatriate those earnings from abroad.
According to The Vice Chairman and CFO, "In the fourth quarter of 2017, we recorded a one-time $2.5 billion provisional net tax expense which reflects a portion of the total $4 billion liability on accumulated earnings which is expected to be paid out over eight years starting in 2019.
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