PepsiCo to lay off hundreds of workers at headquarters

PepsiCo Inc. is laying off workers at the headquarters of its North American snack and beverage divisions, a signal that corporate belt-tightening extends beyond technology and media, according to people familiar with the matter and documents reviewed by the Wall Street Journal.

Hundreds of jobs will be cut, one of the people said. The cuts affect the company’s North America beverage business, which is based in Purchase, NY, and its North America snacks and packaged food business, headquartered in Chicago and Plano, Texas. , the people said.

In a memo sent to staff that was seen by the Journal, PepsiCo told employees the layoffs were to “simplify the organization so we can operate more efficiently.” The cuts will be heaviest in the beverage sector as the snacks unit has already cut positions with a voluntary retirement program, the people said.

LOS ANGELES, CALIFORNIA – MARCH 08: Pepsi products are listed for sale at a Target store on March 8, 2022 in Los Angeles, California. PepsiCo Inc considers options for future business in Russia after invasion of Ukraine as larg (Photo by Mario Tama/Getty Images/Getty Images)

PepsiCo makes Doritos, Lays and Quaker Oats potato chips, as well as its namesake cola. As of December 25 last year, PepsiCo employed about 309,000 people worldwide, including about 129,000 in the United States.

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Demand for food and beverages sold in grocery stores was strong despite rising prices that affected many households. PepsiCo and other food companies have raised prices to offset rising ingredient, transportation and labor costs.

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After reporting an increase in quarterly sales and profits, PepsiCo executives said in October they were cutting costs to offset pressure on profit margins and to deal with what appeared to be worsening macroeconomic conditions.

PepsiCo Doritos brand tokens for sale at a Dollar General department store in Simpsonville, Kentucky, U.S. on Thursday, August 12, 2021. Dollar General Corp. is expected to release its earnings figures on August 26. | Getty Images

The U.S. job market as a whole remains historically tight, with employers jostling for a limited labor pool and driving up wages despite an uncertain economic outlook.

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PepsiCo joins other companies, including Walmart Inc. and Ford Motor Co., that have cut white-collar workers even as they retain front-line staff. Meanwhile, a slowdown in advertising has pushed many tech and media companies into layoff mode.