A wide ranging restructuring is set to reshape PepsiCo operations in the United States as the company moves to cut costs, simplify its product range, and improve growth. The changes follow weeks of discussions with activist investor Elliott Investment Management, which disclosed a 4 billion dollar stake in the company in September.
PepsiCo plans to reduce nearly one fifth of its US product portfolio by early next year. The plan also includes shutting down several manufacturing lines and putting a stronger focus on affordable pricing. The company has said it has started a review of its North America supply chain and will move to “aggressively reduce costs” while simplifying its product structure. These changes are expected to affect roles in the United States and Canada.
Employees in several North American offices including Purchase in New York, Chicago, and Plano in Texas were recently asked to work remotely for the week, a step often seen before job cuts. In a message to staff, North America chief people officer Jennifer Wells said, “We will be making structural changes to our business that will affect some roles in the company.”
The company has already begun reducing its footprint. In November, PepsiCo announced the closure of Frito Lay facilities in Orlando, Florida, leading to more than 450 layoffs, which it said were “driven by business needs.”
As part of the new plan, PepsiCo will also increase automation and digital tools. The company said the strategy will deliver “at least 100 basis points of core operating margin expansion in aggregate over the next three fiscal years.” It also plans to share an update on its supply chain review in late 2026.
Elliott will not take board seats, and there are no plans for a proxy contest. Marc Steinberg, partner at Elliott, said, “We are confident that PepsiCo will create substantial value for shareholders as it executes on this plan, and we look forward to continued engagement with the Company.”
PepsiCo now expects organic revenue growth of 2 to 4 percent for fiscal 2026.
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