PepsiCo Is About To Lay Off Hundreds Of People
The company behind such popular products as Cheetos, Gatorade, and of course, Pepsi, is expected to lay off hundreds of workers in a not-too-appetizing move, per The Wall Street Journal. This, despite the fact that PepsiCo's third-quarter report showed an expected full-year organic revenue growth of 12 percent, according to a report released in October of 2022.
The unfortunate news out of PepsiCo comes on the heels of Coca-Cola's announcement last month that the fellow soda company will be offering buyouts to certain employees in cost-cutting measures, The Atlanta Journal-Constitution reports.
Although sodas are but one portion of PepsiCo's portfolio, it's worth noting that the market segment has experienced a pinch lately, as many consumers are opting instead for drinks flavored with fruit juices (rather than artificial sweeteners), beverages that contain probiotics, and the like, Beverage Industry reports.
Historically high inflation rates probably aren't helping matters, either. Soda prices have risen, thanks at least in part to the escalating price of aluminum, according to Reuters. Sadly, it seems that even the most prevalent household staples like those produced by PepsiCo aren't immune to the challenges of the current economy.
These jobs are likely to be affected by PepsiCo layoffs
Plenty of PepsiCo employees are likely crossing their fingers and toes right now for job security. This time last year, PepsiCo had more than 300,000 employees worldwide, 40% of which were based in the U.S., CNBC reports. Now, the rumor is that an unspecified number of people (likely in the hundreds) will be laid off.
The word on the street is that the majority of the layoffs will occur within PepsiCo's beverage business. This is because the snacks division already underwent cuts by offering voluntary retirement packages, CNBC says. The job losses will be felt primarily at the company's offices in Purchase, New York; Chicago, Illinois; and Plano, Texas.
Although it's hardly unusual for a corporation this size to trim where necessary on occasion, this is no doubt not the way that the world's second-largest food and beverage company wants to kick off the New Year.