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PepsiCo to Lay Off Hundreds Of Workers: Report Says

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PepsiCo to Lay Off Hundreds Of Workers: Report Says

(CTN NEWS) – According to people familiar with the matter and documents reviewed by The Wall Street Journal, PepsiCo Inc. is laying off workers at its North American snacks and beverages headquarters.

One person said hundreds of jobs would be eliminated. People familiar with the company’s operations said the cuts would affect North American beverages based in Purchase, N.Y.

And North American snacks and packaged foods based in Chicago and Plano, Texas.

It told employees in a memo viewed by the Journal that the layoffs were intended “to simplify the company so it could operate more efficiently.”

As a result of a voluntary retirement program for the snacks unit, the cuts will be heavier in the beverage business.

PepsiCo to Lay Off Hundreds Of Workers: Report Says

Pepsi products are displayed for sale in a Target store on March 8, 2022 in Los Angeles, California. PepsiCo Inc is considering options for the business going forward in Russia following the invasion of Ukraine as larg (Photo by Mario Tama/Getty Images / Getty Images)

PepsiCo makes Doritos, Lays potato chips, Quaker Oats, and its namesake cola.

PepsiCo employed approximately 309,000 people worldwide as of Dec. 25, including 129,000 in the United States.

Food and beverages sold in grocery stores have been in high demand despite rising prices. PepsiCo and other food companies have raised prices to offset higher ingredients, transportation, and labor costs.

Ticker     Security  Last  Change  Change% 
PEP  PEPSICO INC.  182.16  -0.96  -0.52 

In October, PepsiCo executives announced they were cutting costs to cope with worsening macroeconomic conditions and offset the pressure on profit margins.

Despite uncertain economic prospects, the U.S. labor market remains historically tight as employers compete for a limited pool of workers.

PepsiCo to Lay Off Hundreds Of Workers: Report Says

PepsiCo Lays brand chips for sale at a Dollar General department store in Simpsonville, Kentucky, U.S., on Thursday, Aug. 12, 2021. Dollar General Corp. is scheduled to release earnings figures on August 26. | Getty Images

PepsiCo joins Walmart Inc. and Ford Motor Co. in trimming white-collar workers while keeping front-line staff. A slowdown in advertising has forced many techs and media companies to lay off workers.

Ticker  Security    Last  Change  Chande% 
WMT    WALMART INC.  151.65  -1.57    -1.02   
F  FORD MOTOR CO.  13.38  -0.48  -3.46   

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