PepsiCo intends to layoff hundreds of employees: Report
The layoffs are part of PepsiCo's plan to 'simplify the company so we can function more efficiently.' According to the report, the food behemoth will lay off employees at its offices in Chicago, Purchase, New York, and Plano, Texas.
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FollowPepsiCo Inc. is laying off headquarters employees from its North American snack and beverage operations, as per Wall Street Journal, meaning that the corporate cuts are beginning to stretch beyond the technology and media companies.
The Purchase, a New York-based corporation, will fire hundreds of employees, Journal reported on Monday, citing an internal document. According to the Journal, PepsiCo framed the layoffs as an attempt to 'simplify' the firm.
However, a PepsiCo spokesperson did not immediately respond to the report. In after-hours trading, the company's shares rose to 0.1 per cent.
Despite paying higher prices for commodities, including sugar, corn, and potatoes, and passing those costs on to customers, the maker of Frito-Lay chips, Mountain Dew soft drinks, and Quaker Oats cereals says demand for its products remains strong.
According to the report, PepsiCo layoffs will have an even more significant impact on the company's beverage unit, as the snacks unit has already reduced its employees vis a voluntary retirement programme.
According to a company regulatory filing, Pepsi employed 3,09,000 people worldwide as of last Christmas, December 25, with more than 40 per cent of them based in the United States. In October of this year, the beverage company raised its full-year revenue forecast due to higher prices, which increased its sales.
Nonetheless, the uncertain economic environment and persistent inflation have scared businesses across a wide range of industries, forcing them to cut costs. National Public Radio is limiting employment, while CNN, owned by Warner Bros. Discovery Inc., is laying off employees, as are several other media conglomerates. Meanwhile, major technology businesses such as Amazon.com Inc., Apple Inc., and Meta Platforms Inc. are laying off thousands of employees.
Also read: Amazon may now layoff 20,000 employees, including senior managers: Report
Also read: Indian startup HealthifyMe sacks 150 employees; offers severance, medical insurance
Also read: H&M to layoff 1,500 employees as retailers face slowing sales and rising costs
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