Pepsi To Lay Off Hundreds Of Its Employees
Despite a spike in Pepsi activity, such as the release of several new flavors and even epic video campaigns to promote the products, the company will be laying off hundreds of employees. The corporate layoff will affect employees in North America across the company’s food and beverage departments. This layoff comes as some departments of the company are reporting low sales.
Pepsi has released a slew of new Pepsi soda flavors. The new flavors include Pepsi Mango, Pepsi Nitro, and Pepsi Nutmeg, which also included an epic video campaign featuring some of the greatest names in soccer. The company is also releasing hundreds of employees.
While the beverage department of the Pepsi company has been buzzing and profits have been high, the snack division has not been doing as well. The company must consider the profit of the company as a whole. As the company considers all divisions, tough decisions have been made.
Layoffs are never good for employees, especially during the holidays. Pepsi currently employs around 310,000 employees in the United States. That number will soon become smaller as the company prepares for the release of hundreds of employees, possibly more.
Pepsi will let go of employees from Plano, Texas; Chicago, Illinois; and Purchase, New York. In a memo sent to employees, the company made a statement that gave a reason for the layoffs. The company is said to be making changes to simplify the organization in an effort to run and operate in a more efficient way.
As the current economic state is showing signs of a rocky 2023, companies are preparing for bumpy roads ahead. Layoffs are happening in all sectors and among many companies, not just Pepsi. Some companies that have recently laid off a vast number of employees include Twitter, Walmart, Amazon, and Meta.
This layoff also happens as Pepsi has shown an overall inconsistent revenue report. While some parts of the company seem to have high-profit margins, others divisions are reporting a loss. With inflation still affecting everyone, people have cut back on spending.
As people have tightened the strings on their budget, departments such as Frito-Lay, which Pepsi owns, are experiencing a loss of business. This is essentially a contributing factor to why the company has decided to lighten its employee load. Prior to this layoff, Pepsi implemented a voluntary retirement program to cut back on the number of employees they have.
The voluntary retirement program was implemented for those in the snack division of the company. As a result, the snack division will not be hit as hard by the latest layoffs. The beverage department of Pepsi will, however, be significantly impacted.
Currently, Pepsi stocks are down. The layoffs are a massive blow to not only the employees but the company as well. Things are not looking completely terrible, though.Pepsi just took its first delivery via Tesla semi-truck a short time ago. Pepsi is one of the large fleet operators that will be utilizing fully electric semi trucks to begin delivering loads across the United States. The company was set to deliver products via the Tesla semis in 2019 but faced delay.
