Pepsi layoffs: Here’s the biggest clue that job cuts are coming as PepsiCo looks to ‘right-size’ workforce

Layoffs have hit American workers hard in 2025, particularly in the government and tech sectors. Already this year, well over a million jobs have been lost due to layoffs—and unfortunately, it doesn’t look like a cessation of job cuts is on the horizon. Reports say that beverage and snack giant PepsiCo is the latest major American company getting ready to announce layoffs.

Here’s what you need to know.

What’s happened?

On Monday, PepsiCo (Nasdaq: PEP) issued a memorandum about its intention to enhance shareholder value in 2026.

In the memo, PepsiCo CEO Ramon Laguarta said that the planned initiatives were to accelerate “organic revenue growth, deliver record productivity savings and improve core operating margin, starting in 2026.”

The initiatives include using a targeted approach on affordable price tiers for its products in various channels in order to stimulate sales growth, reducing operational costs, and using automation and digitalization “to advance and accelerate our global productivity initiatives,” according to the company.

These initiatives are widely seen as a response to demands from activist investor Elliott Investment Management, which took around a $4 billion stake in the company earlier this year. Elliott Investment Management is known for aggressively pursuing cost reduction and operational efficiencies in the companies in which it invests.

But the above initiatives are allegedly not the only changes PepsiCo is preparing for. The company is reportedly also set to announce job layoffs.

PepsiCo reportedly will cut jobs in the U.S. and Canada

Besides the operational changes announced in its memo, PepsiCo is also reportedly set to eliminate jobs, according to multiple reports.

Fast Company has reached out to PepsiCo for comment on the reported layoffs.

Bloomberg reported on Tuesday that the company instructed employees in some of its major North American offices to work from home this week. Those offices include locations in PepsiCo’s headquarters in Purchase, New York, as well as its offices in Chicago and Plano.

Companies have increasingly required employees to work from home during weeks when layoffs are announced. Such mandates often make it easier on the company conducting the layoffs, as they soften the emotional toll the layoffs have on affected employees and those left behind. Layoffs can severely hurt employee morale, and so companies want to lessen the impact on the remaining workforce—and their productivity—in any way they can.

At the time of this writing, no new layoffs have officially been announced by PepsiCo. However, as Bloomberg noted, recently, PepsiCo executives have spoken about “right-sizing the workforce.” (“Right-sizing” is a phrase companies have begun using in recent years to refer to layoffs.)

In November, PepsiCo announced 500 layoffs after deciding to close two Frito-Lay facilities in Orlando, Florida, according to FoodDive.

How has PepsiCo stock reacted to the news?

PepsiCo’s stock price seems to have shrugged off the company’s announcements about its plans to enhance shareholder value.

Yesterday, PEP shares got a modest boost of less than 2%. And today in early morning trading, PEP shares are currently down about half a percent.

Since the year began, PEP shares have lost about 4.5% of their value. Over the past twelve months, PepsiCo’s stock price is down about 8.9%.

In October, PepsiCo reported its latest Q3 2025 results, which saw the company announce net revenue of $23.9 billion, an increase of about 2.6% year-over-year.

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