Job cuts aim to streamline North American operations at PepsiCo
PepsiCo is laying off workers in North America in a bid to build a "future-fit" business, according to reports, a move that is expected to hit about 1,000 employees.
Ram Krishnan, CEO of PepsiCo North America, made the announcement in a letter to employees on Monday, CNBC reported.
"We have a clear ambition for PepsiCo North America: to build a stronger, more future-fit business that delivers industry-leading growth," Krishnan said in the letter, as quoted by the news outlet.
"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 change will impact about 1,000 employees across PepsiCo's North American operations over the next week, according to the reports. The company has 306,000 employees worldwide, including roughly 125,000 in the United States.
PepsiCo has yet to confirm the exact number of employees affected, as well as the functions and teams that will be hit by the job cuts. HRD has reached out to PepsiCo for comment.
The changes come in the wake of PepsiCo's third-quarter results, released on 8 October, in which Chairman and CEO Ramon Laguarta said the company is "acting with urgency to sustainably improve" its performance in North America.
Laguarta said this would be achieved through "more investments in innovation, effective brand building, and sharper marketplace execution by channel."
"Additional structural cost reduction actions are being identified and will be implemented in the coming months to help fund investments that aim to accelerate organic revenue growth and mitigate the impacts of rising input cost inflation," Laguarta added.
PepsiCo reported net revenue of US$25.27 billion for the 12 weeks to 5 September, up 5.6 per cent from a year earlier. However, net revenue at PepsiCo Foods North America was flat year-on-year, while the unit's core operating profit fell 12%. PepsiCo Beverages North America grew net revenue by five per cent, which the company said primarily reflected acquisitions made in 2025.
