PepsiCo Inc. (NASDAQ:PEP) plans to cut about 1,000 jobs across its North American food and beverage operations as the company moves to streamline its business.
PepsiCo North America CEO Ram Krishnan informed employees Monday that the company would begin implementing organizational changes over the following week, according to a Wall Street Journal report.
PepsiCo Moves to Cut Costs, Improve Efficiency
The restructuring aims to simplify operations, improve coordination and strengthen execution across PepsiCo’s North American businesses.
“The goal is to move faster, execute better, and invest behind the opportunities that will drive our growth,” Krishnan said in a letter cited by Reuters.
PepsiCo employed about 306,000 people worldwide as of Dec. 27, 2025, including roughly 125,000 in the United States.
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Weak North American Sales Add Pressure
The job cuts follow PepsiCo’s third-quarter results, released Oct. 8.
Third-quarter revenue rose 5.6% year over year to $25.27 billion, beating analysts’ estimate of $24.96 billion.
Core earnings increased 2% to $2.34 per share, topping the $2.29 consensus estimate.
Organic revenue grew 3.1%, marking its fastest growth since the fourth quarter of fiscal 2023.
However, PepsiCo Foods North America and PepsiCo Beverages North America reported declines in organic revenue. Lower sales volumes outweighed gains from higher prices.
PepsiCo also faced pressure on North American profit margins due to affordability initiatives, higher advertising and marketing expenses, and an unfavorable sales mix.
The company expects margin pressure in North America to continue through the fourth quarter.
Management has prioritized cost reductions and reinvestment in growth opportunities to improve competitiveness and operating efficiency.
PEP Price Action
PEP Price Action: PepsiCo shares were down 0.41% at $141.30 during premarket trading on Tuesday, according to Benzinga Pro data.
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