PepsiCo to cut about 1,000 jobs as North American business struggles

PepsiCo is cutting about 1,000 jobs across North America as the company tries to turn around lagging sales in its home market.

“We have a clear ambition for PepsiCo North America: to build a stronger, more future-fit business that delivers industry-leading growth,” Ram Krishnan, CEO of PepsiCo North America, wrote in a Monday letter to employees obtained by CNBC. “To do that, we need to be faster, more connected, and more capable, while continuing to invest in growth — behind our people, capabilities and brands.”

Over the next week, Pepsi plans to cut jobs as it says it aims to streamline its operations and better connect teams across the company’s North American business. PepsiCo employs about 306,000 people worldwide, including roughly 125,000 in the United States, as of Dec. 27, according to a company filing.

The Wall Street Journal first reported the coming layoffs.

In October, PepsiCo cut its full-year earnings outlook, citing the struggles in its home market. During the third quarter, its North American beverage unit saw volume shrink 2%, while its North American food division reported flat volume.

While the company has tried to boost sales by cutting prices and investing in marketing, the turnaround is taking longer than expected, Chief Financial Officer Steve Schmitt said on the company’s earnings conference call.

Shares of Pepsi rose slightly in afternoon trading. The stock is down nearly 1% this year, lagging behind the S&P 500‘s gains of nearly 11% over the same period.