Business

PepsiCo reported to cut about 1,000 North American jobs

PepsiCo is expected to cut jobs in its North American food and beverage business as it seeks a simpler structure amid weak volume trends.

Daniel Okafor

By Daniel Okafor · Business Editor

2 min read

PepsiCo reported to cut about 1,000 North American jobs
Photo: CNBC

PepsiCo is reported to be eliminating about 1,000 roles in North America, with changes expected over the coming week in its food and beverage business. The PepsiCo 1000 jobs North America cuts would form part of an effort to simplify the company’s structure while its home market faces softer demand.

The Wall Street Journal first reported the approximate figure, according to CNBC. Reuters, which obtained a letter to employees from PepsiCo North America chief executive Ram Krishnan, reported more generally that the company was cutting jobs in the unit.

Why is PepsiCo cutting North American jobs?

Krishnan told employees that the company wants to reduce complexity and fragmentation, clarify accountability and make decisions more quickly, according to Bloomberg News and Transport Topics. Reuters reported that he said the goal was to help PepsiCo move faster, execute better and invest in opportunities for growth.

PepsiCo says the changes are intended to streamline operations and bring teams in its North American business closer together. Krishnan leads PepsiCo’s food and beverage portfolio across the United States and Canada, according to the company’s leadership page.

The supplied reports do not specify which functions or locations would be affected.

North American sales have been soft

The restructuring follows a weaker period for PepsiCo in North America. The company lowered its full-year earnings outlook in October after continued softness in the region, Reuters and CNBC reported.

In the third quarter, volume at PepsiCo’s North American beverage division fell 2%, while food volume was unchanged, CNBC reported. Reuters said PepsiCo has been trying to revive regional growth amid sluggish soda sales, weaker demand for higher-priced snacks and elevated input costs.

Chief Financial Officer Steve Schmitt said on the company’s October earnings call that efforts including price reductions and marketing investment were taking longer than expected to improve the North American business, CNBC reported.

How large is PepsiCo’s workforce?

PepsiCo had about 306,000 employees worldwide as of Dec. 27, 2025, including roughly 125,000 in the United States, according to the company’s annual report as cited by Reuters and CNBC. The reported job total covers North America, while the supplied reports give a U.S. figure rather than a total headcount for the region.

Reuters reported that PepsiCo has also been pursuing productivity savings as part of a turnaround effort following activist investor Elliott Investment Management’s roughly $4 billion stake about a year earlier.

This story draws on original reporting from CNBC.