New York: PepsiCo Inc. is laying off workers at the headquarters of its North American snacks and beverages divisions, a signal that corporate belt-tightening is extending beyond tech and media, according to people familiar with the matter and documents reviewed by The Wall Street Journal. Hundreds of jobs will be eliminated, one of the people said.
The cuts affect the company’s North America beverage business, which is based in Purchase, N.Y., and its North America snacks and packaged-foods business, which has headquarters in Chicago and Plano, Texas, the people said. In a memo sent to staff that was viewed by the Journal, PepsiCo told employees that the layoffs were intended “to simplify the organization so we can 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 makes Doritos, Lays potato chips and Quaker Oats, along with its namesake cola. As of Dec. 25 last year, PepsiCo employed about 309,000 people worldwide, including about 129,000 people in the U.S.Demand for food and beverages sold in grocery stores has been strong despite rising prices that have pinched many households.
PepsiCo and other food companies have been raising prices to offset higher costs for ingredients, transport and labor.Food and beverage maker PepsiCo has announced layoffs of hundreds of employees to shrink the size of the company . The company also said it will lay off employees from its headquarters in Chicago and offices in New York, Texas.
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The Wall Street Journal has obtained a copy of a letter PepsiCo sent to its employees about layoffs to reduce the company’s size and increase efficiency. A greater number of job cuts will be made in the beverage manufacturing unit than in the food preparation and sales unit. According to the report, PepsiCo said that a voluntary retirement plan has already been implemented in the snack preparation and sales unit.
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