A Recent Report Is Suggesting PepsiCo Is To Cut Many Corporate Jobs

The Wall Street Journal has recently published a report that is pertaining to PepsiCo and its employees. The report published by the news reporting outlet has claimed PepsiCo is planning to cut many jobs.

PepsiCo Planning to Cut Jobs

According to the report, the food and beverage giant has made a decision that it is going to lay off several employees.

The sources quoted by the news outlet suggest that the company has planned it will be cutting hundreds of jobs. These jobs will be cut from the North American region.

One of the most alarming things about the report is that the company is planning to cut hundreds of corporate jobs. It is quite concerning that the company has to cut corporate jobs.

Several speculations have already started to circulate all over social media that the company is facing a financial crisis. Therefore, they have decided to take the step as their business may not be doing well.

More Details from the Report

The report reveals that PepsiCo is planning to cut jobs from multiple businesses that it runs in different states. It is to cut jobs from New York, Texas and Purchase, and Chicago; Plano.

The news outlet has claimed that the information has been shared by people from the inside who are aware of the matter.

They have also claimed that a company memo is being circulated that carries the same information.

The businesses that are part of PepsiCo’s portfolio include Quaker Oats foods, Frito-Lay snacks, and Gatorade drinks.

The Unit Taking the Harder Hit

Among the several units that PepsiCo operates, it is the beverage unit that is going to take the major hit. It is being claimed that the majority of the jobs will be cut from the beverage unit.

If it was not for the majority of the workforce from the snacks unit taking voluntary retirement, the majority of the job cuts could have been from there.

The snacks unit had already started making the necessary adjustments according to the company’s plans. They had already offered several employees the opportunity of entering the voluntary retirement program.

As a result, the snacks unit was able to cut down on its workforce on a greater level.

So far, the company has not responded to any of the news reporting sources. Therefore, it is expected that the company may still be considering its decision.

PepsiCo’s Headcount

According to the latest worldwide employment report for PepsiCo, the company employed a total of 309,000 people from all over the world.

The vast majority of these jobs, somewhere around 40%, were based in the United States. The company had shared this information in its regular regulatory filing.

Full-Year Revenue Hike

No one could have imagined that PepsiCo would make such a decision of laying off so many employees.

It was a few months back (in October) when the company announced that it had upgraded its revenue outlook for the entire year.

The company reported that they had recorded a significant rise in their sales and that was mainly due to the price surge for their products.

Despite increasing the full-year revenue, some of the business units run by PepsiCo have not been performing well.

The unit that has faced a major decline in sales and revenue is the Frito-Lay North America unit. This could only suggest that the people in the particular region have stopped buying many of the snacks.

The only reason behind fewer sales is that people are not finding the snacks to be in their budget as much as they used to be before the inflation hiked.

With consumers cutting down on their spending on snacks and other beverages, it is obvious that companies such as PepsiCo will take a hit.

PepsiCo is not the only company taking the hit of its rivals, Coca-Cola, also had to cut down jobs a few months back.

At the time of writing, PepsiCo’s shares are trading at a high of $183.35 having experienced a 0.13% surge in the latest trading session. It is possible that the share prices may plummet in the upcoming sessions.