Report: Hundreds of Layoffs Set to Hit PepsiCo
Pepsi is set to be the latest company inciting a round of massive layoffs, according to a new report by the Wall Street Journal.
The company, which oversees soft drinks such as Gatorade, Pepsi, and popular snack brands like Lays, Doritos, will reportedly target hundreds of employees in its beverage division in three major markets: Purchase, New York, Plano Texas, and Chicago, Illinois.
According to an internal memo, WSJ stated that the layoffs were intended to “simplify” the organization so it could “operate better.”
As the end of the fiscal year looms, PepsiCo is coming off of a somewhat strong Q3 2022, with an 8.8% quarterly net revenue growth and a 7.7% net revenue growth year to date.
The company’s most recent earnings report even upped the expected delivery of organic revenue growth to reach the 12% mark year over year whereas it was previously expected to be only 10%.
As per a filing in August 2022, PepsiCo reported that it had a total of 299,297 permanent employees by the end of 2021 in addition to 11,103 temporary employees bringing the total number of employees heading into 2022 to 310,400. It was unclear how many employees or teams would suffer, other than the vague use of the word “hundreds”. “
The company recently made headlines for running a holiday campaign that featured Lindsay Lohan, a contentious actress. It showed Lohan enjoying a drink called “Pilk”, which is a mixture of milk and Pepsi.
— Lindsay Lohan (@lindsaylohan) December 1, 2022
“Combining Pepsi and milk has long been a secret hack among Pepsi fans,” Pepsi’s Chief Marketing Officer Todd Kaplan said in a company release regarding the new campaign. We thought Pilk and Cookies would be an excellent way to celebrate the holidays, especially with the popularity of ‘dirty sodas’ on TikTok and across the country. “
PepsiCo was up over 9% in a one-year period as of late Tuesday afternoon, even as layoffs loom.
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