Home / Business and Economy / PepsiCo Slashes Products, Plans Layoffs Amid Activist Push
PepsiCo Slashes Products, Plans Layoffs Amid Activist Push
9 Dec, 2025
Summary
- PepsiCo will cut nearly 20% of its US product lineup.
- Layoffs are planned for North American offices, including Plano, Texas.
- Activist investor Elliott supports the plan for growth and savings.
PepsiCo is undergoing a major operational overhaul, influenced by activist investor Elliott Investment Management. The company announced plans to slash its overall product count, notably reducing its US lineup by nearly 20%. These strategic adjustments are designed to foster accelerated organic revenue growth and achieve record productivity savings, with improvements to core operating margins anticipated from 2026 onward.
In conjunction with product line reductions, PepsiCo is preparing for layoffs across its North American offices, including its Purchase, New York headquarters, Chicago, and Plano, Texas. This follows instructions for employees in several offices to work remotely for the week, a common precursor to workforce reductions. The company confirmed structural changes affecting some roles.
Elliott, holding a substantial stake, has advocated for these changes, citing concerns over PepsiCo's complex brand portfolio and declining market share. CEO Ramon Laguarta stated these actions are intended to reduce costs, boost productivity, and modernize manufacturing to enable reinvestment in other business areas. This follows prior discussions of 'right-sizing the workforce' and a recent plant closure in Florida.
