PepsiCo workers are bracing for cuts as the company signals a major shakeup tied to its ongoing talks with activist investor Elliott Investment Management.
According to Bloomberg, PepsiCo has alerted employees that layoffs are on the way, telling staff that significant “structural changes” are coming while asking many across North America to work from home this week. People familiar with the situation say the company is reviewing its North American supply chain and preparing strategic announcements that could land within days.
Remote work directives were sent to offices in Purchase, New York, Chicago, and Plano, Texas. Companies often shift staff home ahead of workforce reductions, adding to employee anxiety about what comes next.
“We will be making structural changes to our business that will affect some roles in the company,” Chief People Officer Jennifer Wells said in a December 7 message viewed by Bloomberg News.
Elliott, which took a roughly $4 billion stake in PepsiCo in September, has pushed for a leaner portfolio and sharper focus as the company slips in beverage market share. Sources say the activist group supports the planned changes and has encouraged PepsiCo to rethink product development, pricing, packaging, and capital allocation.
The company is not expected to make board changes, though it may consider shedding certain drink and snack brands as it restructures. PepsiCo has already been trimming operations, including the closure of two Frito-Lay facilities in Orlando last month that cut more than 450 jobs.
CEO Ramon Laguarta has said the company aims to cut costs, boost productivity, and modernize manufacturing while refining its brand mix to fuel future growth.
