PepsiCo Inc. is considering ambitious plans to revitalize its U.S. product lineup and pursue affordability, but change also looms on the horizon for employees. PepsiCo is reportedly considering layoffs in 2025, adding major cost-cutting plans to its business reorganization initiative. PepsiCo’s affordability crunch follows an agreement made with investor Elliott Investment Management to revitalize the business and make its $4 billion stake in the company a worthwhile investment. As the PepsiCo restructure takes shape, the possibility of layoffs has become more real for employees who have been asked to work remotely this week.
The PepsiCo layoffs are part of the business strategy to cut costs and product lines for a more nimble and strategic approach in 2026. (Image: Pexels)
PepsiCo Layoffs in 2025 Suggested as the Business Doubles Down on Structural Change
PepsiCo’s workforce cuts have been confirmed, but the scale of the change remains a mystery. “We will be making structural changes to our business that will affect some roles in the company,” Jennifer Wells, Chief People Officer within North America, told employees, as confirmed by Bloomberg. Workers across the company’s North American offices in New York, Chicago, and Texas were asked to work remotely this week.
This is common practice before the announcement of layoffs. It gives employees the option to learn the fate of their jobs from their homes and reduces the emotional turmoil within the office space. Many have argued that an in-person discussion is the best way to communicate difficult news, but most large organizations have found the remote work strategy easier to manage.
Since Monday, employees have posted screenshots of the email to platforms like Reddit, asking whether the request to work from home was a sign that layoffs were on their way. Despite the decision to break the news to employees slowly, such strategies cause an inevitable rush of anxiety for employees, leaving us wondering whether there’s a right way to conduct layoffs.
PepsiCo Explores an Ambitious Supply Overhaul in 2025
Investor Elliott Investment Management disclosed a $4 billion stake in the company earlier in September, and has since urged PepsiCo to revisit its business strategy to chase a bolder approach. Not only does this ambitious plan involve cost cuts, but it also involves a 20% reduction in its product lines. Apart from “ensuring affordable price tiers and simpler ingredients,” the company is also looking at investing more heavily in the automation of its processes.
Over the last few years, PepsiCo has underperformed in comparison to Coca-Cola, which has managed to better adapt to the shift in consumer habits. On a mission to catch up, the company is now looking to “aggressively reduce costs” and eliminate some of its products to pursue a reset in its offerings to the public. With almost one-fifth of the product portfolio on its way out, it is inevitable that the PepsiCo layoffs will continue into 2026 as factories are shut down and teams are made redundant.
The reports also suggest that PepsiCo’s workforce cuts aren’t merely a result of the push from Elliot. PepsiCo announced plant closures in November 2025, which resulted in the company laying off around 450 workers.
End-of-the-Year Layoffs Are Particularly Hard on Workers
Business decisions are made based on the needs of the organization. They are made to ensure that investors remain satisfied and the organization has a better outlook for the next year. Unfortunately, these ill-timed decisions can have a more drastic impact on workers. Layoffs are difficult no matter when they occur, but December marks a period of festivities and celebrations, with many workers running on the last of their funds for the year.
Layoffs at large multinational corporations do come with severance benefits, but the announcements remain brutal. Despite this, Pepsico isn’t the only one to explore layoffs towards the end of the year. From Omnicom to Amazon, many workers are currently still reeling from the massive cuts to their organizations. Tech companies like Apple and HP have also committed to workforce cuts to reorient the business towards new goals with a more light-footed approach.
With a reported record 1.1 million cuts in 2025, layoffs have been the one constant in the landscape of employment this year. While workers hope that things will settle in 2026, the changes and reorganization efforts are expected to continue into the next year, particularly thanks to reorganization efforts in favor of AI investments. The speculation is certainly foreboding, but there is some hope that businesses will find the stability they are looking for and settle down in the latter half of the year, looking internally to make improvements. We’ll see what the year has to offer when the time comes.
Have information or opinions to share regarding the PepsiCo layoffs? Share them with us. Subscribe to The HR Digest for insights on workplace trends, layoffs, and what to expect with the advent of AI.
