PepsiCo to lay off hundreds of workers in headquarters roles

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

Hundreds of jobs will be eliminated, one of the people said. The cuts affect the company’s North American beverage business, which is based in Purchase, NY, and its North American snacks and packaged-foods business, which has headquarters in Chicago and Plano, Texas, the people said.

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

LOS ANGELES, CALIFORNIA – MARCH 08: Pepsi products are displayed for sale in a Target store on March 8, 2022 in Los Angeles, California. PepsiCo Inc is considering options for business going forward in Russia following the invasion of Ukraine as large (Photo by Mario Tama/Getty Images/Getty Images)

PepsiCo makes Doritos, Lay’s potato chips and Quaker Oats, along with its namesake cola. As of Dec. 25 last year, PepsiCo employed about 309,000 people worldwide, including about 129,000 people in the US

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Demand for food and beverages sold in grocery stores has been strong despite rising prices that have pinched many households. PepsiCo and other food companies have been raising prices to offset higher costs for ingredients, transport and labor.

Ticker Security Last Change Change %
PEP PEPSICO INC. 183.12 -2.57 -1.38%

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After reporting a jump in quarterly sales and profits, PepsiCo executives in October said they were cutting costs to offset the pressure on profit margins and to weather what appeared to be worsening macroeconomic conditions.

The overall US labor market remains historically tight, with employers competing for a limited pool of labor and bidding up wages despite an uncertain economic outlook.

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PepsiCo joins other companies, including Walmart Inc. and Ford Motor Co., that have been trimming white-collar workers even as they hold on to front-line staff. Meanwhile, an advertising slowdown has pushed many tech and media companies into layoff mode.

Ticker Security Last Change Change %
wmt Walmart Inc. 151.65 -1.57 -1.02%
F FORD MOTOR CO., LTD. 13.38 -0.48 -3.46%

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