Food & Beverage Giant PepsiCo To Layoff Hundreds Of Employees To 'Simplify' The Organisation

The American multinational food and beverage giant PepsiCo is the latest company to join the layoff announcement list.

PepsiCo, which houses various renowned brands such as Lays, Gatorade, Pepsi, Mountain Dew, Quaker Oats, and Doritos, among others, is laying off hundreds of employees at its US headquarters in the snacks and beverages divisions. It is a signal that corporate belt-tightening is extending beyond tech and media, according to people familiar with the matter and documents reviewed, as per the Wall Street Journal report.

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Hundreds of jobs will be eliminated, one of the people said. According to people, the job cuts affect the company¡¯s North American beverage business, which is based in Purchase, New York, and its North American snacks and packaged foods business, which has headquarters in Chicago and Plano, Texas.

Communication To PepsiCo Staff

In a memo sent to PepsiCo staff, which was viewed by The Wall Street Journal, PepsiCo told employees that the layoffs were intended ¡°to simplify the organisation so we can operate more efficiently.¡± The layoffs will be heavier in the beverage business because the snacks unit already has trimmed positions through a voluntary retirement program, the people said, as per the report.

As of December 25th last year, PepsiCo employed about 309,000 people worldwide, including about 129,000 in the U.S.

Also Read: How Pepsi Once Owned The World's Sixth Largest Navy

Job Cuts Despite Strong Despite Strong Demand

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The job cuts come as demand for food and beverages sold in supermarkets remains strong, despite rising prices that have hit many households hard. PepsiCo and other food companies have been raising prices to offset higher costs for ingredients, transport, and labor, the report mentioned.

After reporting a jump in quarterly sales and profits, PepsiCo executives in October said they were cutting costs to offset the pressure on profit margins and to weather what appeared to be worsening macroeconomic conditions.

The overall U.S. labor market reportedly remains historically tight, with employers competing for a limited pool of labor and bidding up wages despite an uncertain economic outlook.

As per the report, PepsiCo joins other companies, including Walmart Inc. and Ford Motor Co., that have been trimming white-collar workers even as they hold on to front-line staff. Meanwhile, an advertising slowdown has pushed many tech and media companies into layoff mode.

Amongst the global giants, Amazon, Microsoft, Meta, Twitter, HP, and Intel are among those who have already announced mass layoffs recently.

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