PepsiCo is cutting about 1,000 jobs across North America as it seeks to revive weakening sales in its home market.
The reductions are expected to take place over the next week as the company streamlines its operations and works to bring teams across its North American business closer together.
Ram Krishnan, chief executive of PepsiCo North America, told employees the division aimed to create “a stronger, more future-fit business that delivers industry-leading growth”.
“To do that, we need to be faster, more connected, and more capable, while continuing to invest in growth – behind our people, capabilities and brands,” he said.
PepsiCo employed about 306,000 people worldwide, including roughly 125,000 in the United States, as of 27 December, according to a company filing.
The job cuts come after PepsiCo lowered its full-year earnings outlook in October, citing difficulties in its home market. In the third quarter, volumes at its North American drinks division fell by 2%, while volumes in its North American food division were flat.
The company has attempted to support sales through lower prices and increased marketing investment, but Steve Schmitt, its chief financial officer, said the turnaround was taking longer than expected.
PepsiCo shares rose slightly in afternoon trading but are down by nearly 1% this year, compared with a gain of nearly 11% for the S&P 500 over the same period.
