PepsiCo to cut about 1,000 jobs as North American business struggles

Summary

• PepsiCo is cutting approximately 1,000 jobs across North America to address lagging sales in its home market.
• CEO Ram Krishnan stated the company aims to build a stronger, future-fit business by becoming faster, more connected, & more capable.
• The layoffs are intended to streamline operations & better connect teams within the North American business.
• PepsiCo employs about 306,000 people worldwide, including roughly 125,000 in the United States as of Dec. 27.
• The company first cut its full-year earnings outlook in October due to struggles in its home market.
• During the third quarter, the North American beverage unit saw volume shrink 2% while the food division reported flat volume.
• CFO Steve Schmitt noted that efforts to boost sales through price cuts & marketing investments are taking longer than expected.
• PepsiCo shares rose slightly in afternoon trading despite being down nearly 1% for the year, lagging behind the S&P 500's gains of nearly 11%.