Arabic version: بيبسيكو تعتزم خفض نحو 1,000 وظيفة في أمريكا الشمالية
According to Cnbc, PepsiCo plans to cut about 1,000 jobs across North America as part of a broader effort to turn around lagging sales in its home market. The company said the reductions will take place over the next week.
PepsiCo said it intends to streamline operations and connect teams more closely across its North American business. Ram Krishnan, CEO of PepsiCo North America, wrote in a letter to employees that the company aims to build a stronger, more future-fit business that can deliver industry-leading growth.
“To do that, we need to be faster, more connected, and more capable, while continuing to invest in growth — behind our people, capabilities and brands,” Krishnan wrote in the letter obtained by CNBC.
The planned cuts follow a reduction in PepsiCo’s full-year earnings outlook in October, when the company cited challenges in its home market. In the third quarter, North American beverage volume declined 2%, while volume in its North American food division was flat. Chief Financial Officer Steve Schmitt said on the company’s earnings conference call that efforts to support sales through lower prices and marketing investment were taking longer than expected.
PepsiCo employed about 306,000 people worldwide, including roughly 125,000 in the United States, as of Dec. 27, according to a company filing. The Wall Street Journal first reported the forthcoming layoffs. Pepsi shares rose slightly in afternoon trading, although the stock was down nearly 1% for the year, compared with gains of nearly 11% for the S&P 500 over the same period.
