PepsiCo is preparing to lay off hundreds of U.S. workers at three major divisional headquarters in a sign that the company’s brands may struggle to pass on further price increases to indebted consumers. I’m here.
The memo I got wall street journalThe company, which sells everything from Ray’s Potato Chips and Quaker Oats to Gatorade Energy Drinks, told staff that the cuts would disproportionately hurt its beverage business because Snacks has already cut many jobs. rice field.
The move aims to “simplify the organization so that it can operate more efficiently,” according to the paper.
PepsiCo, which just took delivery of its first Tesla Semi after a delay of at least a year, employs more than 125,000 full-time workers across North America.
Hundreds of jobs have been lost, with corporate sites in Purchase, New York, Chicago and Plano, Texas likely to be most affected, one of the people said.
The layoffs, though relatively small, are notable. Recent headline-tightening examples of corporate belt tightening have so far largely affected the technology sector and digital asset firms.
These companies hit a record high for the Fed as investors put capital into fast-growing companies and made better returns when ultra-safe 10-year Treasury yields were just above 1%. tended to be the main beneficiaries of monetary stimulus.
By comparison, consumer goods producers like PepsiCo tend to add employees at a much slower pace than Meta and Coinbase as their sales typically grow as a percentage of the population as a whole.
Price hike across the board
Third Quarter Ended September 3rdbut PepsiCo reported a similar, surprising 16% increase in currency-adjusted earnings.
Frito-Lay North America, the company’s second-largest division, saw a 20% increase in sales despite a 2% decline in sales volume as it offset higher costs for cooking oil, potatoes and corn .
It’s questionable how long consumers will be able to sustain massive price increases just to buy a bag of their favorite Doritos tortilla chips compared to typical store-owned brands.
US credit card debt soared 15% in the third quarter, the biggest year-over-year increase in more than 20 years, according to data released by the New York Federal Reserve.
As a result, on the third-quarter investor conference call, PepsiCo’s chief financial officer, Hugh Johnston, flagged the company’s continued efforts to eliminate waste and inefficiency everywhere. To deliver superior financial results. “
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