PepsiCo to lay off hundreds of employees
Jobs in New York, Texas, Illinois to be eliminated
As economy cools, it will hit the labor market and layoffs will increase: Andy Challenger
Challenger, Gray & Christmas Inc. senior vice president provides insight on the economy on 'Making Money.'
PepsiCo sector and division headquarters-based workers will be working from home through Wednesday as the world's second-largest food and beverage business finalizes job cuts, according to a memo obtained by FOX Business correspondent Charlie Gasparino.
On Monday, the owner of brands including Pepsi, Lay's and Cheetos announced a plan to streamline marketing and centralize manufacturing that will lead to hundreds of eliminated jobs at facilities in Texas, New York, and Illinois.
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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."
Tanner said the change led to unquestionable success but continued growth requires the company to honestly assess its fitness as an organization and evolve.
"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," Tanner added.
PepsiCo attributes the impending layoffs to navigating the coronavirus pandemic and changes to the industry. As of Christmas last year, the beverage company employed roughly 309,000 people around the globe, including approximately 129,000 people in the U.S.
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In addition to the soft drink, PepsiCo makes Doritos, Lay's potato chips and Quaker Oats.
PepsiCo Doritos brand chips for sale at a Dollar General department store in Simpsonville, Ky., on Thurs., Aug. 12, 2021. Dollar General Corp. is scheduled to release earnings figures on August 26. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PEP | PEPSICO INC. | 158.74 | +2.02 | +1.29% |
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The Wall Street Journal first reported the layoffs.
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