PepsiCo follows the trend, to layoff hundreds of workers in HQ roles

PepsiCo Inc. is laying off workers at the headquarters of its North American snacks and beverages divisions, a signal that corporate budget-tightening is extending beyond tech and media.

According to one of the people familiar with the matter, hundreds of jobs will be eliminated. The cuts affect the company’s North American beverage business, which is headquartered in Purchase, NY, and its North America snacks and packaged-foods business, which are based in Plano, Texas, and Chicago, Illinois, the people said.

In a memo sent to staff, PepsiCo told employees that the layoffs were intended to simplify the organization so that it could operate more efficiently. The cuts will be heavier in the beverage business because the snacks unit already has trimmed positions with a voluntary retirement program, the people said.

PepsiCo manufactures Lays potato chips, Doritos, and Quaker Oats, along with its namesake cola, Pepsi. As of December 25, 2021, PepsiCo employed nearly 309,000 people worldwide, including almost 129,000 people in the US alone.

Demand for food and beverages sold in grocery stores has been strong despite rising prices that have pinched many households. Additionally, PepsiCo and other food firms have been raising food prices to offset higher costs for ingredients, transport, and labor.