PepsiCo Inc. (NASDAQ: PEP) is preparing to lay off hundreds of its corporate staff, joining the list of tech and media companies attempting to trim costs in a worsening macroeconomic environment riddled with surging inflation and rising interest rates.
PepsiCo, which not only produces its flagship cola drink but also makes Quaker Oats, Lays, and Doritos chips, is expected to eliminate hundreds of North American workers reported the Wall Street Journal, citing people familiar with the matter. The job cuts will be focused across the company’s beverage business headquartered in Purchase, New York, as well as its snacks and packaged-foods business, which has headquarters both in Chicago, Illinois, and Plano, Texas.
In a letter sent to affected workers seen by the WSJ, Pepsi said the forthcoming layoffs are expected to “simplify the organization” so it “can operate more efficiently.” The majority of job cuts will be focused across the company’s beverage unit, since the snacks business already underwent staff trimming via a voluntary retirement program. Pepsi, which employs about 129,000 people in the US, is grappling with rising labour, transport, and ingredient costs, prompting it to pass the additional expenses onto consumers via higher prices.
Although Pepsi reported an increase in both quarterly sales and profits, the iconic cola maker said it will start cutting costs to ease growing pressure on profit margins and overcome what’s appearing to be a deteriorating macroeconomic environment.
Information for this briefing was found via the WSJ. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
