PepsiCo to cut thousands of jobs in North America

PepsiCo, the maker of Pepsi and Mountain Dew drinks and Doritos chips, will cut about 1,000 jobs in North America as part of a simplified organizational structure, Bloomberg reported.

Ram Krishnan, CEO of the company’s North American division, sent a letter to employees, in which he called the existing workflows too complex and fragmented.

“We have the capacity to simplify the structure, share responsibility more clearly and speed up decision-making,” Krishnan wrote. According to him, the changes will affect a number of divisions of the company in the coming week.

The cuts come amid weak results from PepsiCo's North American beverage division. The company also faced difficulties in retaining market share for salty snacks following product price hikes as shoppers became more cautious about spending.

According to annual reports, as of December 27, 2025, PepsiCo employed about 306,000 people worldwide, including approximately 125,000 in the United States

In October, The Wall Street Journal reported that PepsiCo had lost major customers, including Marriott hotel chain and Costco food courts. KFC has also agreed to switch to Coca-Cola in U.S. restaurants, starting in January 2027 and due to end by spring. Since January 2025, PepsiCo has been supplying beverages to U.S. Subway restaurants under a ten-year agreement announced in March 2024.