PepsiCo plans to cut about 1,000 jobs in North America as it seeks to reverse weak sales in its home market. According to Sina Finance, PepsiCo North America CEO Ram Krishnan wrote in a Monday letter to employees that the company aims to build a stronger, future-ready business with industry-leading growth, while becoming faster, more connected and more capable and continuing to invest in its people, capabilities and brands. The layoffs are planned for the coming week and are intended to streamline operations and better connect teams across PepsiCo’s North American businesses.
As of December 27, PepsiCo had about 306,000 employees worldwide, including about 125,000 in the United States, according to company filings. In October, the company lowered its full-year earnings outlook, citing difficulties in its home market. In the third quarter, sales volume fell 2% at its North American beverage business and was flat in its North American food division.
CFO Steve Schmitt said on the company’s earnings call that efforts to boost sales through price cuts and marketing investment were taking longer than expected to turn the business around. PepsiCo shares edged up in afternoon trading. The stock is down nearly 1% this year, while the S&P 500 has gained nearly 11% over the same period.