Global food and beverage giant PepsiCo is preparing to lay off approximately 1,000 employees across its North American operations as the company seeks to improve efficiency amid slowing sales and rising operating costs.
As per a report by Moneycontrol, citing The Wall Street Journal, the workforce reductions are expected within a week.
PepsiCo North America Chief Executive Officer Ram Krishnan confirmed the restructuring in a letter to employees dated Nov 9.
Krishnan said the changes were intended to make the business more agile and better coordinated while maintaining investments in employees and brands.
The planned layoffs follow PepsiCo's decision last month to lower its full-year earnings forecast amid disappointing performance in its domestic market.
During the September quarter, beverage sales volumes in North America declined 2%, while food volumes remained unchanged.
The company has faced weaker consumer demand for carbonated drinks and premium-priced snacks, alongside higher input costs.
Efforts to revive sales through price reductions and increased marketing expenditure have delivered slower-than-expected results.
Chief Financial Officer Steve Schmitt acknowledged during the company's earnings call that the recovery was taking longer than anticipated.
The weaker performance has increased pressure on PepsiCo to streamline operations and strengthen profitability.
PepsiCo's restructuring also comes amid pressure from activist investor Elliott Investment Management, which acquired a stake worth approximately $4 billion a year earlier.
Since then, the company has been pursuing productivity improvements and cost savings to strengthen financial performance.
PepsiCo employed approximately 306,000 people worldwide at the end of 2025, including around 125,000 in the US.
The proposed layoffs therefore represent a relatively small proportion of its global workforce.
Investors responded cautiously positively to the announcement, with PepsiCo shares rising approximately 1% on Monday.
However, CNBC reported that the stock remained down nearly 1% over the comparison period, underperforming the S&P 500 index, which had gained almost 11%.
The latest workforce reductions underline PepsiCo's efforts to address weak consumer demand while accelerating its North American business turnaround.
