PepsiCo sector and division headquarters workers will be working from home on Wednesday, as the world's second largest food and beverage business completes job cuts, according to a memo obtained by FOX Business correspondent Charlie Gasparino.
The plan to streamline marketing and centralize manufacturing will lead to hundreds of eliminated jobs at facilities in Texas, New York and Illinois, according to the owners of brands including Pepsi, Lay's and Cheetos.
Kirk Tanner, CEO of PepsiCo Beverages North America, said in a company memo that the transformation involved difficult decisions that will affect our people. He said that we will be notifying those who are impacted by this organizational change over the course of the week. It is a difficult message to convey knowing that we are making the tough decision to eliminate roles because of the fact that we know this change will strengthen our company. Tanner said that the change resulted in unquestionable success but continued growth requires the company to assess its fitness as an organization and to evolve as an organization.
Tanner said that the changes will be difficult for individuals and our teams, and that we are committed to treating people with respect, care, and providing strong transition assistance to those who will be leaving the company.
PepsiCo attributes the impending layoffs to navigating the coronaviruses and changes to the industry. As of Christmas last year, the beverage company employed approximately 309,000 people, including approximately 129,000 people in the U.S.
In addition to the soft drink, PepsiCo makes Doritos, Lay's potato chips and Quaker Oats.
The layoffs were first reported by the Wall Street Journal.