PepsiCo to cut about 1,000 jobs
PepsiCo is reportedly eliminating approximately 1,000 jobs across its North American food and beverage division as it attempts to turn the company around.
According to a Nov. 9 letter to employees viewed by The Wall Street Journal, PepsiCo North America Chief Executive Ram Krishnan wrote that the CPG company will make changes over the next week to streamline operations.
“We will simplify how we operate, better connect teams and strengthen the capabilities we need,” Krishnan said in the letter. “The goal is to move faster, execute better and invest behind the opportunities that will drive our growth.”
Last month, PepsiCo cut its full-year earnings outlook as North American beverage volume fell 2% in the third quarter. Soft drinks in particular is an area where the company is looking to improve. Food volume in Q3 was flat.
“Looking ahead, we remain focused on building upon the strength of the international business while acting with urgency to sustainably improve our performance in North America through more investments in innovation, effective brand building and sharper marketplace execution by channel,” said Ramon Laguarta, CEO and chairman of Purchase, N.Y.-based PepsiCo, in October upon the release of the company's Q3 earnings.
The CPG company shortly thereafter closed its bottling and manufacturing plant in Knoxville, Tenn. “While local sales and delivery teams will continue serving Knoxville-area customers, our immediate focus is supporting affected employees through this transition by providing a paid notice period through Jan. 1, which includes continued pay and benefits, and access to employment and transition resources,” the company said in a statement.
PepsiCo products are available in more than 200 countries and territories around the world. Its beverage and convenient foods portfolio includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream.
This article was first published on Canadian Grocer's sister site, Progressive Grocer.
