Domestic sales "underperform," PepsiCo (PEP.US) launches mass layoffs of thousands in North America
PepsiCo North America has cut about 1,000 jobs to streamline operations, as beverage sales in the third quarter fell by 2% year-on-year and the full-year profit outlook has been revised downward.
According to Jinse Finance APP, PepsiCo (PEP.US) is planning to cut about 1,000 jobs in North America as the company attempts to reverse sluggish sales in its domestic market.
Ram Krishnan, CEO of PepsiCo North America, wrote in a letter to employees on Monday: "We have a clear vision for the PepsiCo North America business: to build a stronger, more future-ready business and achieve industry-leading growth," adding, "To do this, we need to collaborate faster, closer, and with greater capabilities, while continuing to invest in growth—investing in our talent, capabilities, and brands."
PepsiCo plans to carry out layoffs within the next week, with the company saying the move is intended to streamline operations and better connect teams across its North American business. According to company documents, as of December 27, PepsiCo had around 306,000 employees globally, with about 125,000 in the United States.
In October, citing weakness in its domestic market, PepsiCo lowered its full-year profit outlook. In the third quarter, its North American beverage division’s sales fell 2% year-on-year, while North American food division sales remained flat year-on-year.
Chief Financial Officer Steve Schmitt said on the company’s earnings call that although the company has tried to boost sales through price cuts and increased marketing investment, the turnaround is taking longer than expected.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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