Beverage and snack giant PepsiCo is eliminating roughly 1,000 positions throughout North America as part of an effort to revive sales and simplify operations in its domestic region. Ram Krishnan, the CEO of PepsiCo North America, stated in a letter to employees that the company aims to build a stronger and more future-fit enterprise that can achieve industry-leading growth.
The layoffs are scheduled to occur over the following week. Globally, PepsiCo maintains a workforce of approximately 306,000 individuals, with about 125,000 located in the United States according to a company filing.
The workforce reduction follows a lowered full-year earnings outlook in October, which was driven by ongoing challenges in the home market. During the third quarter, the North American beverage division experienced a 2% decline in volume, while the food division reported flat volume numbers. Despite previous efforts to stimulate sales through price cuts and marketing investments, executive leadership noted that the turnaround process is taking longer than initially anticipated.