PepsiCo Inc. is laying off headquarters workers from its North American snack and beverage units, signalling that cost-cutting exercises have extended beyond tech and media companies, as reported by the Wall Street Journal (WSJ).
A person aware of the matter told WSJ that hundreds of jobs will be eliminated. The employees at the company’s headquarters in Purchase, New York and its snacks and packaged-foods business headquartered in Chicago and Plano, Texas, are reportedly being laid off.
It is being done “to simplify the organization so we can operate more efficiently”, the company said in a memo to its employees.
Even though it’s paying more for commodities such as sugar, corn and potatoes and passing those higher prices on to consumers, the maker of Frito-Lay chips, Mountain Dew soft drinks and Quaker Oats cereals has said that demand for its products remains strong.
“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.
In October, the FMCG company’s officials said that they will focus on cutting costs to offset the pressure of thin profit margins. Along with several other companies, it increased the price of its products.
PepsiCo makes Doritos, Lays chips and Quaker Oats along with its Pepsi cola drink. It employs about 309,000 people worldwide. With this, it joins Walmart and Ford Motors in trimming its workforce.
Read all the Latest Business News here