PepsiCo plans to eliminate around 1,000 jobs across its food and beverage operations in North America as part of a restructuring exercise aimed at simplifying its organisational structure and improving operational efficiency. The job cuts are expected to be implemented over the coming week, according to reports citing an internal communication from the company’s North America leadership.
Ram Krishnan, Chief Executive Officer of PepsiCo North America, informed employees that the organisational changes would focus on simplifying operations, improving coordination between teams and strengthening key business capabilities. The restructuring is intended to accelerate decision-making and enable the company to direct resources towards growth opportunities.
The workforce reduction comes as PepsiCo faces continued challenges in its North American business, particularly in the beverage segment, amid sluggish soft drink sales, weaker demand for higher-priced snacks and rising input costs. The company lowered its full-year earnings forecast last month following continued softness in the region.
PepsiCo employed approximately 306,000 people globally as of 27 December 2025, including around 125,000 employees in the United States. The company has been pursuing productivity improvements and cost-saving measures as part of a broader turnaround strategy following pressure from activist investor Elliott Investment Management.
The latest job cuts underline the company’s efforts to streamline its workforce and organisational structure while addressing business performance challenges in one of its key markets.
