PepsiCo Announces Job Cuts to Enhance Efficiency Amid Sluggish Sales
PepsiCo Inc. has announced plans to eliminate certain corporate roles and jobs within its U.S. foods divisions as part of an effort to become “more efficient and consumer-centric” in North America. A spokesperson for the company stated that these measures are part of a multiyear initiative that began last year, aimed at driving growth and better addressing the rapidly evolving needs of customers and consumers.
The U.S. beverages division was one of the first areas to be affected by these changes. However, the company did not disclose the exact number of employees impacted by the layoffs.
Importantly, these layoffs are not related to PepsiCo’s plans to retire workforce representation targets. The company is among several U.S. firms retreating from diversity, equity, and inclusion (DEI) initiatives amid pressure from government entities and conservative activists.
Earlier this month, PepsiCo reported sluggish sales for its most recent quarter and is looking to rebound by diversifying its product offerings, including a greater variety of package sizes and an expansion of healthier snack options.
Despite the announcement, PepsiCo shares showed little movement in New York trading on Friday. The stock has declined nearly 2% so far this year, underperforming compared to the S&P 500 Index, which has gained 3.7%.
