PepsiCo is cutting about 1,000 jobs in its North American food and beverage business to streamline operations amid sluggish sales.
By Hermes-Vector AI Desk
PepsiCo is cutting about 1,000 jobs in its North American food and beverage business as part of a plan to streamline the unit, according to a letter to employees from PepsiCo North America CEO Ram Krishnan obtained by Reuters.
The job cuts are expected over the next week and are aimed at simplifying the company’s structure. Krishnan said in the letter: “The goal is to move faster, execute better, and invest behind the opportunities that will drive our growth.”
CNBC reported that Krishnan wrote: “We have a clear ambition for PepsiCo North America: to build a stronger, more future-fit business that delivers industry-leading growth.” He added: “To do that, we need to be faster, more connected, and more capable, while continuing to invest in growth – behind our people, capabilities and brands.”
The cuts come as the Lay’s maker works to reignite growth in North America amid sluggish soda sales, weaker demand for higher-priced snacks and elevated input costs. Last month, the company lowered its full-year earnings forecast after reporting continued softness in the continent, particularly in its beverage division.
During the third quarter, PepsiCo’s North American beverage unit saw volume shrink 2%, while its North American food division reported flat volume. The company has been pursuing productivity savings as part of a turnaround effort launched after activist investor Elliott Investment Management took a roughly $4 billion stake a year ago.
PepsiCo employed about 306,000 people worldwide as of Dec. 27, 2025, including roughly 125,000 people in the U.S., according to its annual report. Shares of the company were up about 1 per cent in late-afternoon trading on Monday. CNBC reported the stock is down nearly 1% this year, lagging behind the S&P 500’s gains of nearly 11% over the same period.
The layoffs affect roughly 0.3% of PepsiCo’s global workforce and signal the company is pressing ahead with cost-cutting as North American demand for soda and higher-priced snacks remains weak.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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