An American multinational food, snack, and beverage company, PepsiCo Inc is planning to lay off hundreds of workers from its headquarters in the North American snacks and beverages division.
“The overall US labour market remains historically tight, with employers competing for a limited pool of labor and bidding up wages despite an uncertain economic outlook,” the report added.
PepsiCo has announced plans to streamline marketing and centralize manufacturing. The company has reportedly described these layoffs as a way to “simplify” the organization. However, this is a signal that the layoffs may not be limited to Silicon Valley.
According to a company memo, Kirk Tanner, the CEO of PepsiCo Beverages North America said, “The unfortunate reality of this transformation is that it involved difficult decisions that will impact our people.”
“Following this message and over the course of this week, we will be notifying those who are impacted by this organizational change,” he continued.
“While we know this change will strengthen our company, it is a difficult message to convey knowing we are making the tough choice to eliminate roles.”
“We recognize the changes will be difficult for individuals and for our teams, and we are committed to treating people with respect, care and providing a comprehensive severance program to offer strong transition assistance to those who will be leaving the company,” he further added.
The job cuts are set to affect hundreds of employees as per a report by the Wall Street Journal in 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.
PepsiCo employed over 309,000 people across the world with at least 129,000 workers in the United States. PepsiCo produces snack and beverage company’s products including Doritos, Lays chips, and Quaker Oats along with its Pepsi cola drink and many more.
