PepsiCo Cuts 1,000 North American Jobs as Growth Slows

PepsiCo, Inc. (Nasdaq: PEP) will cut around 1,000 positions in North America over the coming week. The Wall Street Journal first reported the action on November 9, 2026, and CNBC reported the same day that CEO Ram Krishnan had told employees about the reductions.

Fast Company reported that PepsiCo employed about 306,000 people worldwide at the end of 2025. The North American cuts equal roughly 0.8% of the company’s 125,000 U.S. positions and about 0.3% of its global workforce.

Fast Company placed the announcement within a broader November wave of workplace reductions. Amazon, Block and Squarespace have already eliminated roles or plan to do so, showing that job cuts are not confined to technology.

Why is PepsiCo cutting 1,000 North American jobs?

CEO Ram Krishnan wrote that PepsiCo’s ambition for North America was to “build a stronger, more future-fit business that delivers industry-leading growth.” He added: “To do that, we need to be faster, more connected, and more capable, while continuing to invest in growth — behind our people, capabilities and brands.”

“We will simplify how we operate, better connect teams and strengthen the capabilities we need,” Krishnan wrote. “The goal is to move faster, execute better and invest behind the opportunities that will drive our growth.” Fast Company said it had reached out to PepsiCo for comment.

The message pairs labor reduction with a reorganization of how PepsiCo operates. It also makes clear that the company frames the cuts as an investment decision rather than a retreat from its brands or North American market.

What is driving the regional slowdown?

PepsiCo’s third-quarter 2026 results, released last month, were broadly respectable, according to Fast Company. Net revenue rose 5.6%, while operating profit increased 19%.

CNBC reported that PepsiCo’s $25.27 billion in quarterly revenue exceeded analyst expectations of $24.96 billion. Its adjusted EPS of $2.34 also topped the $2.29 analysts expected.

Much of that strength came from outside North America. International markets generated 41% of PepsiCo’s year-to-date net revenue, according to the company, leaving its home region as the clear drag.

PepsiCo’s North American food division, which includes Frito-Lay snacks, posted flat volume. Beverage volume fell 2%, and the company attributed weak North American snacks demand to “the consumer environment.”

The regional weakness led PepsiCo to cut its full-year 2026 core EPS growth forecast from 5% to 7% down to 2.5% to 3.5%. That is a 3-percentage-point reduction at both ends of the expected range.

International performance has softened the impact of North America, but it has not hidden the problem. North American food volume remained flat, beverage volume declined, and management responded by lowering the annual growth target and cutting jobs.

Why did investors barely react?

PEP closed at $141 on November 9, according to Fast Company. The shares were down 1.1% for 2026, while the broader S&P 500 had gained more than 10% over the same period.

PepsiCo stock had started the year strongly, rising more than 20% by late February. It then fell substantially from an early-year high above $170, although a gain of more than 12% over the previous 30 days had not erased its midyear losses.

Fast Company noted that investors often reward layoffs because cutting jobs can be the quickest way to improve the bottom line. This time, the shares barely moved after the reductions became public: PepsiCo closed up just under 0.4%, then rose about the same amount in premarket trading on November 10.

The muted reaction suggests that investors do not expect headcount reduction alone to solve PepsiCo’s regional problem. Cost savings can support earnings, but they cannot directly repair weak snacks demand or declining beverage volume.

What do the cuts change for workers and investors?

For employees, roughly 1,000 North American positions are set to disappear over the coming week, according to the company’s announcement. The reduction stops at the regional level; PepsiCo did not announce job cuts elsewhere.

For investors, the cuts may support earnings, but the company’s own numbers show why that may not be enough. North American food and beverage volumes were flat and negative, and management already lowered its core EPS growth range.

The next test is whether the simplified organization can improve North American food and beverage volumes enough to support the revised 2.5%-3.5% core EPS growth outlook. Until volume improves, the cuts buy time; they do not close the regional sales gap.