Layoffs are coming to PepsiCo’s white-collar workforce, according to a report in the Wall Street Journal.
PepsiCo employees showed the Journal an internal memo in which the company advised that hundreds of office workers, in both the beverage and Frito-Lay snack divisions, will be laid off. The memo stated that this will be done “to simplify the organization so we can operate more efficiently.” The layoffs will fall more heavily on the beverage division because Frito-Lay’s workforce has already been reduced by a program to encourage early retirements.
PepsiCo had good results in its most recent quarter, with a 23% increase in net income. However, paring back the workforce has been a priority of Ramon Laguarta, who became CEO in October 2018. A few months afterward, PepsiCo announced a round of layoffs that would affect both white- and blue-collar employees.