American soft drinks maker PepsiCo plans to eliminate about 1,000 jobs in North America as part of a restructuring of its regional business.
The planned job cuts were reported by Bloomberg, which said the company decided to reduce staffing to simplify its corporate structure, redistribute responsibilities across divisions, and accelerate managerial decision-making.
Ram Krishnan, the chief executive officer of PepsiCo's North American division, said that the existing organizational model remains too complex and fragmented.
PepsiCo, headquartered in Purchase, New York, is one of the world's largest food and beverage corporations. In addition to its flagship Pepsi cola, the company owns well-known brands including Lay's, Doritos, Cheetos, Gatorade, and Quaker Oats, with North America serving as its largest regional market.
Corporate restructuring
The staff reductions come amid deteriorating performance for the company in its home North American market. PepsiCo has been experiencing difficulties in its beverage segment and has lost market share in its snack business following recent price increases.
Demand has also been affected by changing consumer behaviour, with shoppers watching their household budgets more carefully and becoming increasingly selective about what they buy. Across the packaged food and drinks sector, repeated price increases have prompted many cost-conscious grocery shoppers to reconsider everyday purchases and turn to cheaper store-brand alternatives.
Loss of KFC contract
The commercial pressure on PepsiCo intensified recently when it lost its contract to supply beverages to KFC restaurants across the United States. The fast-food chain decided to switch its restaurant beverage dispensers to Coca-Cola products after nearly 40 years of partnership with PepsiCo.
The Coca-Cola Company is PepsiCo's primary historical rival in the global soft drinks market. Exclusive pouring-rights agreements with major fast-food chains are among the most valuable distribution channels in the food service industry, providing beverage manufacturers with substantial sales volumes and steady brand exposure across thousands of dining locations. Supplier switches between the two major soft drink producers remain relatively uncommon due to long-term commercial commitments.
Brand refresh and new logo
The workforce reductions follow an overhaul of the company's corporate identity. In 2025, PepsiCo carried out a full rebranding and altered its logo for the first time in 25 years.
The company adopted the brand slogan Food, Drinks, Smile as part of that visual update. On the redesigned logo, the letter P was created to symbolise the heritage and history of the Pepsi soda brand.
