PepsiCo Layoffs: PepsiCo to cut over 1,000 jobs amid sluggish sales in North American market | World News

The job cuts are part of an organisational restructuring aimed at simplifying the company’s structure and improving coordination across teams, according to a letter sent to employees by PepsiCo North America CEO Ram Krishnan on Monday, November 9, obtained by CNBC.

“We have a clear ambition for PepsiCo North America: to build a stronger, more future-fit business that delivers industry-leading growth,” Krishnan wrote in the letter, according to CNBC.

“To do that, we need to be faster, more connected, and more capable, while continuing to invest in growth – behind our people, capabilities and brands,” he added.

PepsiCo faces pressure in North America

The workforce reduction comes as PepsiCo attempts to revive growth in North America amid sluggish beverage sales, weaker demand for higher-priced snacks and elevated input costs.

In October, the company lowered its full-year earnings forecast after reporting continued weakness in the region, particularly in its beverage business.

PepsiCo’s third-quarter results showed that volume in its North American beverage business declined 2 per cent, while its North American food business reported flat volume, according to CNBC.

The company has been attempting to improve sales through price reductions and increased marketing investment. However, the turnaround is taking longer than expected, Chief Financial Officer Steve Schmitt said during the company’s earnings conference call, CNBC reported.

Workforce and restructuring efforts

PepsiCo employed approximately 306,000 people worldwide as of December 27, 2025, including around 125,000 employees in the United States, news agency Reuters reported, citing its annual report.

The latest job cuts form part of a broader productivity and restructuring effort as the company works to improve business performance.

PepsiCo has been pursuing cost savings under a turnaround programme launched after activist investor Elliott Investment Management acquired a stake worth approximately $4 billion in the company a year ago.

The company is seeking to simplify its operations and direct investments towards areas that can support growth.

PepsiCo shares were up about 1 per cent in late-afternoon trading on Monday.