PepsiCo sector and division headquarters workers will be working from home through Wednesday as the world's second largest food and beverage business completes its job cuts, according to a memo obtained by FOX Business correspondent Charlie Gasparino.
On Monday, the owners 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.
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. While we know that change will strengthen our company, it is a difficult message to convey knowing that we are making the tough decision to eliminate roles. Tanner said that the change led to unquestionable success but the continued growth requires the company to assess its fitness as an organization and evolve.
Tanner said that we recognize the changes will be hard for individuals and our teams, and 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 roughly 309,000 people, including approximately 129,000 people in the U.S.
PepsiCo makes Doritos, Lay's potato chips and Quaker Oats in addition to the soft drink.
The layoffs were first reported by the Wall Street Journal.