Bottles of Pepsi are displayed in a store in New York on March 17, 2025.
Spencer Platt | Getty Images
PepsiCo is cutting about 1,000 jobs in North America as the company tries to turn around lagging sales in its home market.
“We have a clear ambition for PepsiCo North America: to build a stronger, more forward-looking company that delivers industry-leading growth,” Ram Krishnan, CEO of PepsiCo North America, wrote in a Monday letter to employees obtained by CNBC. “To achieve this, we need to be faster, more connected and better, while continuing to invest in growth – behind our people, our capabilities and our brands. »
Over the next week, Pepsi plans to cut jobs in an effort to streamline operations and better connect teams across the company’s North American operations. PepsiCo employed about 306,000 people worldwide, including about 125,000 in the United States, as of Dec. 27, according to a company filing.
The Wall Street Journal was first to report the upcoming layoffs.
In October, PepsiCo lowered its full-year profit outlook, citing difficulties in its domestic market. During the third quarter, its North American beverage unit saw volume decline 2%, while its North American food division saw volume flat.
Although the company has tried to boost sales by cutting prices and investing in marketing, the turnaround is taking longer than expected, Chief Financial Officer Steve Schmitt said during the company’s earnings conference call.
Pepsi shares rose slightly in afternoon trading. The stock is down nearly 1% this year, lagging the S&P500Gains of nearly 11% over the same period.
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