PepsiCo plans to lay off hundreds of workers in headquarters roles

As the interest rate keeps climbing, the news of layoff announcements will not stop emerging. The latest employer to join the layoff bandwagon? The snacks and beverages giant PepsiCo. According to sources, PepsiCo Inc. has made the decision to lay off employees at its North American snacks and beverages division headquarters. Earlier in the last quarter of 2022, we witnessed massive layoffs in the tech sector. The media and entertainment layoffs followed the tech layoff announcements. And now, it seems that the food and beverage industry has decided to continue the legacy.

PepsiCo’s planned layoffs will cost the jobs of hundreds of workers, according to the Wall Street Journal. The layoffs will be targeted toward the employees in Chicago; Plano, Texas, and Purchase, New York, as reported by the WSJ, citing a company memo and people familiar with the information. Gatorade drinks, Frito-Lay snacks, and Quaker Oats foods all belong to PepsiCo’s portfolio. The layoffs are a part of their plan “to simplify the organization so we can operate more efficiently.”

WSJ speculates that the hardest hit will be for the beverage unit of PepsiCo, as the snacks unit reduced headcount previously by initiating a voluntary retirement program. Pepsi had a workforce of 309,000 people all over the globe. More than 40% of the jobs were located in the US.

PepsiCo managed to increase its full-year revenue forecast in October by the higher prices boosting its sales. However, as consumer spending patterns changed in response to inflation and rising costs of living, some units of PepsiCo such as Frito-Lay North America saw a shrink in volume. But PepsiCo believes that the demand for their products is still as strong as ever, even though they are paying more for ingredients such as sugar and corn and passing the costs on to their buyers.

PepsiCo is not the only food and beverage giant to start layoffs this year. Previously, Beyond Meat and Impossible Foods also announced job cuts. Coca-Cola, the main rival of PepsiCo announced plans to restructure the North American business of the company via a voluntary separation program. Many workers across America fear for the stability of their jobs as announcements of layoffs just keep coming. Employees at Google are no exception to the layoff anxiety frenzy America is facing right now. Thousands of workers have lost their jobs in the past month as Amazon, Twitter, and other tech giants cut jobs to save costs.