PepsiCo Inc is reportedly planning to lay off hundreds of workers from its headquarters in the North American snacks and beverages division, said a report by the Wall Street Journal, signalling that the layoff season might not be limited to Silicon Valley. The New York-based company has reportedly described these layoffs as a way to “simplify” the organisation.
Furthermore, a memo sent to the employees and reviewed by the publication said that the intention for these layoffs is “simplify the organisation so we can operate more efficiently.” Notably, as of December last year, PepsiCo employed over 300,000 people across the world with at least 129,000 workers in the United States.
The job cuts are set to affect hundreds of employees, one of the people familiar with the matter told the WSJ, including the company’s North American beverage business based in Purchase, New York and PepsiCo’s snacks and packaged-foods business, headquartered in Chicago and Plano, Texas.
This comes after the demand for the snack and beverage company’s products including Frito-Lay chips, Mountain Dew soft drinks, Doritos and so on, has reportedly been quite strong amid the country’s soaring inflation. However, like many other companies in the industry, have also increased their prices to offset higher costs of ingredients, transport and labour, said the WSJ.