PepsiCo is laying off hundreds of employees at its headquarters
The snack and beverage giant is brewing jobs in North America
Ibrahim Al-TarikOctober 5, 2026
PepsiCo Inc. is laying off employees at its North American snack and beverage division headquarters. It's a sign that the company's austerity drive goes beyond tech and media, according to my analyses.
Hundreds of jobs will appear to be cut, sources say. The cuts will affect the North American beverage business based in Purchase, N.Y., and the North American snack and grocery business based in Chicago and Plano, Texas.
In a memo to employees seen by US media, PepsiCo told employees the layoffs are to "simplify the organization so we can work more efficiently." The cuts will be more severe in the beverages division, as the snacks division has already cut jobs under a voluntary retirement program.
In addition to the cola of the same name, PepsiCo also makes Doritos, Lays potato chips and Quaker Oats. As of December 25 last year, PepsiCo employed approximately 309,000 people worldwide, including approximately 129,000 in the United States.
Demand for food and drink sold in grocery stores has been strong despite rising prices that have weighed on many households. PepsiCo and other food companies have raised prices to offset the higher cost of ingredients, transportation, and labor.
After PepsiCo executives reported increases in quarterly sales and earnings in October, they said they were cutting costs to offset pressure on profit margins and to address deteriorating macroeconomic conditions.
The US job market remains historically tight as employers compete for a limited pool of workers and push up wages despite an uncertain economic outlook.
PepsiCo joins other companies like Walmart Inc. and Ford Motor Co. that are laying off their employees while keeping their workers on the front lines. Meanwhile, the slowdown in the advertising business has prompted many tech and media companies to lay off workers.
