Ramon Laguarta, CEO of PepsiCo, discusses the company’s second quarter results, recognizing growth in global snack volume and addresses stagnant performance in the United States.
PepsiCo plans to cut about 1,000 jobs in its North American food and beverage operations as the company seeks to streamline operations and improve performance amid weaker demand and rising costs, according to reports.
The planned layoffs, first reported by The Wall Street Journal, come after PepsiCo in October lowered its full-year 2026 profit outlook, citing challenges in its North American business including lower beverage sales volumes, pressure on snack demand and higher costs.
The cuts are expected to take place over the next week, according to an internal letter from PepsiCo North America CEO Ram Krishnan obtained by Reuters.
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PepsiCo announced plans to raise prices on some drinks as its North American beverage business continues to face sluggish demand. (Angus Mordant/Bloomberg via Getty Images / Getty Images)
In the letter, Krishnan said the changes were aimed at simplifying the company’s organizational structure, speeding up decision-making and helping the company seize growth opportunities.
“The goal is to move faster, execute better and invest in opportunities that will drive our growth,” Krishnan wrote, according to Reuters.
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PepsiCo, which makes Pepsi, Lay’s and Doritos, in October lowered its full-year 2026 core earnings per share growth forecast to between 2.5% and 3.5%, down from its previous expectation of growth at the low end of a 5% to 7% range.
Advertisements leading up to the Super Bowl hope to reach a wider audience. (Kirby Lee-Imagn Images via Reuters/Reuters)
The company also reported a 2% decline in North American beverage sales volume during the third quarter, despite a roughly 5% increase in revenue for that segment.
PepsiCo CEO Ramon Laguarta said in the company’s October earnings release that management remains focused on improving North American performance through additional investments in innovation, brand development and execution across sales channels.
PepsiCo and KFC’s nearly 40-year beverage relationship is coming to an end at the fried chicken chain’s U.S. restaurants. (Mario Tama/Getty Images/Getty Images)
The job cuts also come as PepsiCo seeks broader productivity improvements under pressure from activist investor Elliott Investment Management, which acquired a stake valued at about $4 billion, according to Reuters.
PepsiCo employed approximately 306,000 people worldwide as of December 27, 2025, including approximately 125,000 in the United States, according to its annual report.
The company has not publicly identified which sites or departments will be affected by the reported layoffs.
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FOX Business has contacted PepsiCo for comment.
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