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PepsiCo plans to cut hundreds of jobs, report says

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Pepsi soft drinks are on display at a convenience store in San Francisco, California.

Justin Sullivan | Getty Images

PepsiCo cuts hundreds of corporate jobs in North America, according to the Wall Street Journal.

The layoffs will affect employees at its food and beverage businesses in Chicago; Plano, Texas and Purchase, New York, the Journal reported, citing people familiar with the matter and a company memo. PepsiCo’s portfolio includes Gatorade beverages, Frito-Lay snacks and Quaker Oats foods.

The company’s beverage unit is expected to be hit hardest by the cuts because the snacks unit has already downsized through a voluntary retirement program, according to the Journal.

The company did not immediately respond to a CNBC request for comment.

Pepsi employed 309,000 people worldwide as of Dec. 25, with more than 40% of those jobs located in the United States, according to a company regulatory filing.

In October, PepsiCo raised its full-year revenue forecast after higher prices boosted sales. However, some of its business units, including Frito-Lay North America, reported a drop in volume, a sign that consumers were cutting back on snacks to better manage their budget.

In recent months, companies in the technology and media sectors have laid off workers to cut costs as economic uncertainty weighs on their businesses. Several food and beverage companies have also cut jobs, including Beyond meatImpossible Foods and PepsiCo’s main rival Coca Cola. In November, Coke announced that it would restructure its North American operations through a voluntary separation program including buyouts.

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