Local sales are “boosted”, and Pepsi (PEP.US) in North America launches 1,000 layoffs

The Zhitong Finance App learned that Pepsi (PEP.US) is planning to cut about 1,000 jobs in North America. The company is trying to reverse its weak sales situation in the local market.

Pepsi North America CEO Ram Krishnan wrote in a letter to employees on Monday, “We have a clear vision for PepsiCo's North America business: to build a stronger, more future-oriented business and achieve industry-leading growth.” “To do this, we need to work faster, more closely, and be more capable, while continuing to invest in growth — investing in our people, capabilities, and brand.”

PepsiCo plans to lay off workers within the next week. The company said the move was aimed at streamlining operations and better connecting teams in the North American business. According to company documents, as of December 27, Pepsi had about 306,000 employees worldwide, including 125,000 in the US.

In October, Pepsi lowered its profit forecast for the full year, citing weakness in the local market. In the third quarter, sales in the North American beverage division fell 2% year on year, while sales volume in the North American food division remained flat year on year.

Chief Financial Officer Steve Schmidt said during the company's earnings call that although the company has tried to boost sales by cutting prices and increasing marketing investment, it has taken longer than expected to reverse the situation.