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Amid Economic Turmoil, Pepsico To Cut Hundreds Of Jobs: Report

According to the Journal, PepsiCo claimed the layoffs were done to "simplify" the business

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PepsiCo Inc. is laying off employees from its North American snack and beverage operations, a hint that corporate layoffs are starting to spread beyond technology and media industries, according to an American media report.

As per an internal document, the New York-based corporation will fire hundreds of workers. According to the Journal, PepsiCo claimed the layoffs were done to "simplify" the business.

Shares of the company increased 0.1 per cent in after-hours trading. 

The producer of Frito-Lay chips, Mountain Dew sodas and Quaker Oats cereals claimed that demand for its products is still robust despite paying more for commodities like sugar, corn, and potatoes and passing those higher prices on to customers.

However, the unstable economic climate and ongoing inflation have alarmed businesses across a range of industries and forced them to cut costs. National Public Radio is limiting hiring, and CNN, owned by Warner Bros. Discovery Inc., is laying off employees, along with several other major media companies.

Additionally, as the US tech sector continues to be affected by the weakening global economy, PC manufacturer Hewlett Packard announced it would lay off up to 6,000 workers over the next three years.

However, despite competitors like DoorDash Inc. and Lyft Inc. reducing workers in response to a bleak economic outlook, Uber Technologies Inc. isn't considering doing the same, according to CEO Dara Khosrowshahi.

After speaking at the Economic Club of Chicago, Khosrowshahi was asked if the ride-hailing giant would be cutting back on staff, to which he replied, "No, we're in a good place."

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