PepsiCo to cut 1,000 jobs in North America amid weak sales and restructuring push

PepsiCo is set to cut approximately 1,000 jobs across its North American operations over the next week as the company looks to streamline its business structure and address slowing sales in the US and Canada.

The planned workforce reduction was outlined in a November 9 letter to employees from Ram Krishnan, CEO of PepsiCo North America, according to CNBC. 

“We have a clear ambition for PepsiCo North America: to build a stronger, more future-fit business that delivers industry-leading growth,” Krishnan wrote in the letter.

“To do that, we need to be faster, more connected, and more capable, while continuing to invest in growth — behind our people, capabilities and brands,” he added.

The restructuring is intended to simplify operations and improve coordination across PepsiCo's North American business, which includes its food and beverage divisions.

PepsiCo employs approximately 306,000 people worldwide, including around 125,000 in the US, according to its company filing. The planned job cuts come as the consumer goods company faces mounting pressure to revive demand in its home market.

The workforce reduction follows PepsiCo's decision in October to lower its full-year earnings outlook, citing challenges in North America.

The company's third-quarter performance highlighted the slowdown, with volumes in its North American beverage business declining 2%, while its North American food division reported flat volume.

PepsiCo has attempted to revive demand through price reductions and increased marketing investments. However, the recovery has taken longer than anticipated, chief financial officer Steve Schmitt said during the company's earnings conference call.

The latest restructuring signals a broader effort to realign the business as previous measures have yet to deliver the expected improvement in sales volumes.

While Krishnan's letter outlined the company's ambition to build a more efficient organisation, it did not specify how the workforce reduction would be distributed across its operations.

PepsiCo's planned job cuts come amid a broader wave of workforce reductions across industries as companies reassess their operating structures and costs.

Other major employers have also announced significant workforce changes in 2026. Heineken has announced plans to eliminate up to 6,000 positions, while Nike has cut more than 2,000 jobs. 

UPS has outlined plans to eliminate up to 30,000 operational roles, and Amazon has also announced substantial workforce reductions.

For PepsiCo, the challenge will be to improve operational efficiency while maintaining the commercial capabilities needed to compete in the North American food and beverage market.

The company has yet to provide details on the employees or business functions affected by the latest round of layoffs.