Employment Law

PepsiCo Canada: Severance Packages


PepsiCo, Inc. (PepsiCo) is an American multinational food and beverage corporation. The company’s product portfolio includes Pepsi-Cola, Lay’s, Doritos, Cheetos, Gatorade, Mountain Dew, and SodaStream.

With roots dating back to 1898, the food and beverage giant employs a global workforce of more than 130,000 people, according to LinkedIn. More than 10,000 employees work in Canada.

The Canadian arm of PepsiCo, PepsiCo Canada, is headquartered in Mississauga, Ontario. The company has manufacturing facilities in major cities across the country, including Mississauga, Calgary, and Vancouver.

According to PepsiCo’s website, its iconic brands generate more than $1 billion each in estimated annual retail sales.

Recent layoffs at PepsiCo

  • June 2023: Multiple PepsiCo employees have informed Samfiru Tumarkin LLP that an undisclosed number of part-time weekend employees in Canada will be laid off on September 8, 2023.
  • December 2022: PepsiCo is reportedly cutting hundreds of corporate jobs at its North American snacks and beverage divisions. Samfiru Tumarkin LLP has been contacted by a few workers and is following up on the situation.
  • April 2019: PepsiCo is laying off an undisclosed number of workers as it plans to spend $2.5 billion to restructure the company.
  • February 2018: PepsiCo announced that it’s cutting approximately one per cent of its workforce. The reduction comes as reports claim that some of the company’s staff members will receive bonuses up to $1,000.
  • March 2017: PepsiCo is laying off approximately 100 workers at distribution plants serving Philadelphia. The company claimed that the state’s soda tax is cutting into the area’s soda consumption.
  • March 2014: PepsiCo announced that it’s shutting down its warehouse operations in Dartmouth and Moncton, Nova Scotia. The move will eliminate approximately 43 jobs in the province.
  • February 2012: PepsiCo is planning to cut approximately 8,700 jobs, or three per cent of the company’s workforce. The reduction is part of a multi-year productivity program that is expected to generate $1.5 billion in cost savings by 2014.

Severance for PepsiCo Canada employees

In Canada, non-unionized employees at PepsiCo may get up to 24 months of severance pay when they are fired or laid off from their job. This applies to individuals working in any capacity—full-time, part-time, or hourly—in Ontario, Alberta, and British Columbia. Contractors may also be entitled to severance pay due to employee misclassification.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause.

Even if an employee is fired for cause, they may still be eligible for full severance pay. This is due to the high standards required to legally justify for-cause dismissal.

Severance for provincially regulated employees
Severance packages in mass layoffs
How severance pay works by company
Severance for federally regulated employees

The right to severance pay is consistent regardless of economic conditions, company downsizing, business closures, or significant public health events, such as the COVID-19 pandemic.

WATCH: Employment lawyer Lior Samfiru explains everything you need to know about severance pay on an episode of the Employment Law Show.

The employment lawyers at Samfiru Tumarkin LLP have represented tens of thousands of employees over the years in severance package negotiations.

We have successfully secured much larger amounts for individuals employed across a variety of positions, from entry level jobs to executives.

Lost your job?

Contact Canada's most positively reviewed employment law firm today to get the advice you need and the compensation you deserve.

Get Help Now

How to properly calculate severance pay

There is a general belief that severance is one week’s pay, two weeks’ pay, or a week for every year of service an employee has with a company.

The reality is that severance for non-unionized employees in Canada is calculated using a variety of factors, including age, length of service, position, bonuses, benefits, your employment contract, and your ability to find new work.

• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
Layoffs in Canada

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Don’t sign on the dotted line!

Do not accept any severance offer, termination papers, or exit agreement that you receive. Once you sign back these documents, you eliminate your ability to negotiate additional severance pay.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

Generally speaking, if an employee does not receive the proper amount of severance pay when they lose their job, they may be considered to have been wrongfully dismissed. An employment lawyer at Samfiru Tumarkin LLP can analyze your situation and explain how much compensation you may be owed.

Talk to an employment lawyer

The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country. In addition to severance package negotiations, our team has experience securing solutions for the following employment matters:


Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.

If you are a non-unionized employee who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.

Get What You're Owed!

Our employment lawyers in Ontario, Alberta, and British Columbia are ready to provide you with the advice you need and the compensation you deserve.

Get Help Now

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.

Advice You Need. Compensation You Deserve.

Consult with Samfiru Tumarkin LLP. We are one of Canada's most experienced and trusted employment, labour and disability law firms. Take advantage of our years of experience and success in the courtroom and at the negotiating table.

Get help now