Pepsi-co Implements Workforce Reductions to Streamline North American Operations

PepsiCo Inc. is undergoing workforce reduction at the administrative headquarters of its North American snacks and beverages divisions, indicating that the company’s financial austerity measures are extending beyond the tech and media sectors. According to a reliable source, several hundred jobs will be terminated, affecting both the company’s North American beverage business, headquartered in Purchase, NY, and its North American snacks and packaged-foods business, situated in Plano, Texas, and Chicago, Illinois. PepsiCo has informed its employees via a memo that the layoffs were implemented to streamline the organization, allowing it to function more efficiently. The beverage unit will be more severely affected since the snacks division has already trimmed jobs via a voluntary retirement program.

PepsiCo is responsible for the production of Lays potato chips, Doritos, Quaker Oats, and its namesake cola, Pepsi. As of December 25, 2021, the company had a worldwide workforce of almost 309,000, including approximately 129,000 in the United States. Despite the escalation in prices that have constrained many households, there has been a robust demand for grocery store food and beverages. Furthermore, PepsiCo and other food firms have been increasing food prices to offset the elevated expenses of ingredients, transportation, and labor costs.