PepsiCo plans to cut hundreds of jobs, report says

Pepsi soft drinks are displayed at a convenience store in San Francisco, California.

Justin Sullivan | GettyImages

PepsiCo is the eliminator of hundreds of corporate jobs in North America, according to the Wall Street Journal.

The layoffs will affect employees of its food and beverage businesses in Chicago; Plano, Texas and Purchase, New York, the Journal reported, citing people familiar with the matter and a company memo. PepsiCo’s portfolio includes Gatorade drinks, Frito-Lay snacks and Quaker Oats foods.

The company’s beverage unit is expected to be hit harder by the cuts because the snack unit already shrank its workforce through a voluntary retirement program, according to the Journal.

The company did not respond immediately to a request for comment from CNBC.

Pepsi employed 309,000 people worldwide as of Dec. 25, with more than 40% of those jobs located in the US, according to a company regulatory filing.

In October, PepsiCo spiked its full-year revenue forecast after higher prices boosted its sales. However, some of its business units, including Frito-Lay North America, reported shrinking volume, a sign that consumers were cutting back their snacking to better manage their budgets.

In recent months, companies in the tech and media sectors have been laying off workers to trim costs as economic uncertainty pressures their businesses. Several food and beverage companies also have cut jobs, including Beyond MeatImpossible Foods and PepsiCo’s main rivals Coca-Cola. In November, Coke said it would restructure its North American business through a voluntary separation program that included buyouts.

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