PepsiCo is reported to be set to cut more jobs in North America in a bid to “simplify” the company’s structure.
A report from The Wall Street Journal yesterday (9 November) said the Mountain Dew brand owner is planning to axe around 1,000 jobs from its food and drinks businesses in the market.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
In a letter to employees, seen by the WSJ but not by Just Drinks, PepsiCo’s North America CEO, Ram Krishnan, reportedly said the company would be making changes in the next week.
Later on Monday, Bloomberg and CNBC also reported PepsiCo was cutting around 1,000 roles. Reuters yesterday the Doritos snacks producer is eliminating “some jobs” across its North America operations.
Just Drinks has approached PepsiCo for further information.
According to Bloomberg, in his memo, Krishnan said that “too much of how we work today remains complex and fragmented”.
“We have opportunities to simplify our structures, clarify accountability and make decisions faster,” the PepsiCo North America chief executive reportedly added.
“Over the coming week, we’ll make changes across parts of our organisation to address this.”
Faced with margin pressures for its North America business, the Tropicana maker last month reduced its 2026 earnings outlook.
PepsiCo now expects its core earnings per share to increase 1% to 2% this year, compared with its prior expectation at the “low end” of the 4% to 6% range.
After reporting the new forecasts, the company indicated it would cut costs. CEO Ramon Laguarta said the business was identifying “structural cost reduction actions that reduce redundancies and curtail discretionary expenditures”. He added those could include “reductions in corporate costs and other initiatives not directly tied to growth”.
Over the last two years, PepsiCo has made a series of changes to its production and distribution network in North America that have led to the closure of facilities.
Most recently, it emerged last month the company is shutting a bottling plant in the US state of Tennessee, impacting more than 100 jobs.
