PepsiCo Plans About 1,000 North American Job Cuts

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PepsiCo is laying off about 1,000 people in North America. The company is trying to turn around sales that have lagged in its home market.

Weak volume came first

The cuts follow a weak quarter the company had already reported. In October PepsiCo lowered its full-year 2026 earnings outlook and pointed to its home market.

In the third quarter, North American beverage volume shrank 2%, while food volume was flat.

Volume counts units sold. A drop means fewer products leaving the door, which is different from a dip in prices alone.

Pepsi had already tried to lift sales by cutting prices and investing in marketing. Chief Financial Officer Steve Schmitt told analysts on the earnings call that the turnaround is taking longer than expected.

What the company told employees

Ram Krishnan, CEO of PepsiCo North America, wrote to staff on Monday. CNBC obtained the letter. "We have a clear ambition for PepsiCo North America," he wrote, naming a stronger, more future-fit business with industry-leading growth.

The company says it intends to streamline operations and tie teams across the North American business more closely together. Pepsi plans to make the cuts over the next week. The Wall Street Journal was first to report the layoffs.

The size of the cut and the market reaction

A company filing puts PepsiCo's workforce at about 306,000 people worldwide as of Dec. 27, including roughly 125,000 in the United States.

The shares rose slightly in afternoon trading. They are still down nearly 1% this year, while the S&P 500 has gained nearly 11% over the same period.

Source: CNBC