PepsiCo Cuts 1,000 U.S. Jobs to Streamline Operations Amid Weakening Performance

PepsiCo CEO Ramon Laguarta discussed the second‑quarter earnings, noting strong growth in global snack volumes while highlighting concerns about plateauing performance in the U.S. market.

PepsiCo has announced plans to eliminate roughly 1,000 positions within its North American food and beverage operations, aiming to streamline its portfolio and boost performance despite weaker demand and increasing costs.

These reductions, first reported by The Wall Street Journal, follow PepsiCo’s downgrade of its full‑year 2026 earnings forecast to October, which cited difficulties in its North American segment, including tighter beverage sales, pressure on snack volumes, and rising expense pressures.

Reuters reports that the planned cuts are slated to be implemented within the coming week, based on an internal memorandum from PepsiCo North America chief executive Ram Krishnan.

PepsiCo announced plans to raise prices on select beverages as its North American beverage business continues to face sluggish demand.

Krishnan explained that the initiative aims to accelerate decision‑making, streamline the organizational hierarchy, and focus investment on growth‑driving opportunities.

Promotional advertising slated for the Super Bowl aims to expand its audience reach.

During the third quarter, the company also logged a 2% drop in North American beverage sales volume, even as revenue rose roughly 5%.

PepsiCo CEO Ramon Laguarta emphasized a commitment to elevate North American performance through sustained investment in innovation, brand development, and channel execution.

In October, PepsiCo revised its full‑year 2026 projected earnings per share upward to a range of 2.5%–3.5%, a contraction from the prior target of 5%–7%.

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