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Outside the Box: PepsiCo’s massive, painful restructuring is actually a sign of strength

PepsiCo is being heavily criticized for its plans to spend $2.5 billion to restructure the company and pursue automation in certain procedures, resulting in a large, undisclosed number of layoffs among its 250,000-plus employees.

PepsiCo’s PEP, +0.46% layoffs would be better perceived if they were “justified” in some way — if the company were operating at a loss, for example, and needed to decrease its workforce to compensate. Not only is that the wrong way to look at businesses as they grow and evolve, but this mode of thinking perpetuates the false notion that layoffs and innovation are inherently bad.

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