PepsiCo plans to eliminate approximately 1,000 jobs across its North American food and beverage operations as the company looks to simplify its organizational structure, reduce costs and improve performance amid continued weakness in key categories.
The reductions, announced Nov. 9 in a memo to employees by Ram Krishnan, CEO of PepsiCo North America, are expected to take place over the coming week. The Wall Street Journal first reported the estimated number of positions affected. Specific locations, departments and job categories have not been disclosed.
Krishnan said the company sees opportunities to reduce organizational complexity, clarify accountability and accelerate decision-making. The cuts represent less than 1% of PepsiCo’s approximately 125,000 U.S. employees.
The restructuring comes as PepsiCo faces slowing demand across its North American business, particularly in beverages. Third-quarter North American beverage volume declined 2%, while food volume was flat. The company also reduced its 2026 adjusted earnings-per-share growth outlook to 1% to 2%, down from its previous forecast of 4% to 6%.
For the Northeast, the announcement follows several significant workforce and facility changes over the past two years. In February 2025, Frito-Lay announced the closure of its PopCorners manufacturing facility in Liberty, N.Y., eliminating 287 positions. The former Sullivan County facility was subsequently sold to Hudson Valley Farms, which has discussed plans to prioritize former PepsiCo employees for approximately 200 anticipated jobs.
More recently, PepsiCo ended manufacturing and warehouse operations at its Cheverly, Md., bottling facility in September, affecting 143 employees, including 98 represented by Teamsters Local 639. Sales and delivery operations in the area were expected to continue.
While PepsiCo has not indicated whether the latest 1,000-position reduction will affect Northeast facilities, the moves reflect a broader effort to realign its North American operating network as the company responds to changing consumer preferences, cost pressures and slower category growth.
The company has also been working to improve margins and streamline operations following pressure from activist investor Elliott Investment Management, which acquired an approximately $4 billion stake in PepsiCo in 2025 and pushed for improved operating performance.