After Amazon layoffs stirred many sectors, it is now PepsiCo’s turn. As per a report, PepsiCo layoffs are next in line to affect hundreds of employees. The snacks and beverages giant is reportedly sacking employees working at the headquarters.
According to a report in The Wall Street Journal, the news of PepsiCo layoffs has been attributed to people familiar with the matter and some documents reviewed by the publication. It mentioned that PepsiCo’s plans to trim the workforce is “a signal that corporate belt tightening is extending beyond tech and media.”
The report adds that PepsiCo’s job cuts affect the company’s North America beverage business, which is based in Purchase, N.Y., and its North America snacks and packaged-foods business, which has headquarters in Chicago and Plano. In addition to this, as reviewed by the WSJ, the memo sent to the staff mentioned that PepsiCo layoffs were meant to “simplify the organisation so we can operate more efficiently.”
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However, as per the report, the job cuts are expected to be heavier in the beverage business as the snacks business already went through job cuts with the help of a voluntary retirement program.
PepsiCo’s demand for food and beverages sold in grocery stores has been strong even after inflation. However, the snack and beverage giant has been raising prices to offset higher costs for ingredients, labour and transport. Even in October, the company executives reportedly said that they are cutting costs to release some pressure in profit margins.
With the announcement of PepsiCo layoffs, experts believe that the recession or the global economic downturn is setting in. Earlier, it was just the tech and media layoffs that caused havoc, however, with PepsiCo announcing layoffs, more industries and people are now expected to be affected.
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