PepsiCo plans to cut about 1,000 jobs across North America. A month earlier, the company lowered its 2026 profit forecast after another weak quarter in North America, especially in beverages.
PepsiCo shares, however, rallied over that month. Down almost 12% for 2026 in early October, they closed November 9 just 1.14% lower.
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Where PepsiCo’s North American Plan Is Running Behind
Ram Krishnan, head of PepsiCo North America, announced the cuts in a staff letter on Monday. The letter framed the cuts as a way to simplify the company’s structure and connect its teams more closely. The Wall Street Journal first reported the 1,000 figure.
“The goal is to move faster, execute better, and invest behind the opportunities that will drive our growth,” Krishnan said.
The PepsiCo layoffs equal less than 1% of the company’s roughly 125,000 US employees.
In February, the company cut prices by up to 15% on brands such as Lay’s and Doritos. Third-quarter North American beverage volume still fell 2%, while food volume was flat.
Chief Financial Officer Steve Schmitt said in October that the recovery was taking longer than planned. The company also cut its 2026 adjusted earnings per share (EPS) growth forecast to 1% to 2%. Its earlier target was the low end of 4% to 6%.
PepsiCo Stock Has Run Ahead of Its Margins
That cut came a year after activist investor Elliott Investment Management bought a roughly $4 billion stake in PepsiCo. After talks with Elliott, management promised at least 100 basis points of core operating margin growth over three years.
Instead, core operating margin fell to 16.9% in the third quarter, from 17.3% a year earlier. In October, the company promised deeper cost cuts to make up for weak demand.
Investors have not waited for the results. The shares closed Monday at $141.88, a 12.63% gain from about $125.97 a month earlier.
The stock also yields 4.17%. A yield near 4% was part of why it became Jim Cramer’s PepsiCo pick in August, alongside falling oil prices.
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