From CNBC · Amelia Lucas · · 1m
PepsiCo cuts 1,000 North America jobs as sales lag
PepsiCo is laying off about 1,000 workers across North America to streamline operations as the company struggles with weak beverage and food volumes in its home market.
In brief
PepsiCo is laying off about 1,000 workers across North America to streamline operations as the company struggles with weak beverage and food volumes in its home market. PepsiCo is cutting about one thousand jobs across North America to turn around lagging sales after beverage volume fell two percent and food volume…
PepsiCo cuts one thousand jobs
PepsiCo will cut about one thousand jobs across North America as the company tries to turn around lagging sales in its home market, CEO Ram Krishnan said in a letter to employees.
“To do that, we need to be faster, more connected, and more capable, while continuing to invest in growth.”
North American volumes fall short
In the third quarter, PepsiCo's North American beverage unit saw volume shrink two percent, while its North American food division reported flat volume, prompting the company to cut its full-year earnings outlook.
Turnaround taking longer than expected
PepsiCo has tried to boost sales by cutting prices and investing in marketing, but the turnaround is taking longer than expected, CFO Steve Schmitt said on the company's earnings conference call.
What it means
PepsiCo is cutting about one thousand jobs across North America to turn around lagging sales after beverage volume fell two percent and food volume was flat in the third quarter.
