PURCHASE, N.Y. — PepsiCo Inc. is cutting about 1,000 jobs across North America as the company struggles in its home market.
In a memo to employees, Ram Krishnan, the company’s North America chief executive officer, said the move is needed to streamline operations that remain overly “complex and fragmented."
“We have opportunities to simplify our structures, clarify accountability and make decisions faster,” Krishnan wrote. “Over the coming week, we’ll make changes across parts of our organization to address this.”
PepsiCo employs about 306,000 people worldwide, including roughly 125,000 in the United States, according to The Wall Street Journal, which first reported the coming layoffs.
PepsiCo last month posted a 2% decline in North American beverage volume in its third quarter. Snack sales held steady with year-earlier figures. Overall, the performance served as a stark contrast to the 8% gains in international volumes during the quarter.
In reporting the earnings, CEO Ramon Laguarta said PepsiCo aims to improve execution and margins by boosting brand investment, paring costs, and reviewing operations to see where efficiencies can be improved.
Pepsi lowered its forecast for earnings in the current quarter, citing margin pressures higher input costs, an unfavorable product mix, expiring commodity-hedge benefits and the loss of a tariff-related benefit.
