Local Profile has reached out to PepsiCo for comment. This story will be updated pending response.
PepsiCo is laying off hundreds of workers at the headquarters of its North American snacks and beverages division, including Plano and Chicago, according to the Wall Street Journal (via the Dallas Business Journal).
In a memo, PepsiCo told employees that the layoffs were “to simplify the organization so we can operate more efficiently.” The snacks division has already faced cuts with a voluntary retirement program, making the beverage division at the forefront of recent cuts. The memo asked all headquarters employees in the Plano and Chicago branches to work from home through November 7 to “respect the privacy” of their co-workers who were laid off.
“Our impact will be relatively small in scale,” the memo said.
But the demand for Pepsi products remains strong even with inflation. According to the Dallas Business Journal, PepsiCo executives in October said they were cutting costs to offset pressure on profit margins, despite recording increased sales.
The Dallas Morning News reported the company’s third-quarter financial results expect its full-year revenue to increase 12% and earnings per share to rise 10% during the fiscal year.
“We are encouraged by the progress we are making on our strategic agenda and remain committed to investing in our people, brands, supply chain and go-to-market systems and winning in the marketplace,” CEO Ramon Laguarta said at the time.
The Dallas Morning News also reported that U.S.-based employers announced 76,835 cuts in November alone, a 127% increase from October. The number of employees laid off is 417% higher than the cuts announced in November 2021.
The company manufactures products such as Doritos, Gatorade, Lays, Quaker Oats and of course Pepsi soda. PepsiCo employs around 309,000 people, with 129,000 based in the U.S.