Soda behemoth PepsiCo, Inc is reportedly laying off workers at its North American headquarters, becoming the latest major company to undergo cost-cutting measures in recent weeks.
PepsiCo is slashing hundreds of jobs largely concentrated in its beverage unit in a bid to make the company more nimble and “to simplify the organization so we can operate more efficiently,” the company wrote in a memo to staff reported by the Wall Street Journal.
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Like other companies in the food industry, PepsiCo has been jacking up prices as it grapples with inflationary pressures. Still, demand for food and beverage products has remained robust among consumers. The company produces Pepsi drinks as well as Doritos, Quaker Oats, and Lays products.
“The consumer has very much stuck with our products,” Hugh Johnston, PepsiCo’s finance chief, previously explained, the news outlet reported. “In a world where there are many struggles and stresses, we are kind of an affordable luxury.”
Despite upping their forecast profits, the company previously signaled its intent to undergo belt-tightening measures in the future to minimize costs, per the report. The company raised prices by an average of 17% compared to the prior year.
As of Christmastime last year, the company employed 309,000 people globally and roughly 129,000 in the United States. Across the country, inflation appears to be cooling off, and jobs appear to be strong, with unemployment figures hovering around 3.7%.
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Other companies such as Ford Motor Co. and Walmart have undergone similar rollbacks with employment. Notably, the tech sector, including companies like Amazon, Meta, and Twitter, has seen considerable job cuts in recent weeks.
The Washington Examiner reached out to a PepsiCo representative for comment.
