PepsiCo to cut about 1,000 jobs in North America

In a Monday letter to employees obtained by CNBC, Ram Krishnan, CEO of PepsiCo North America, said the company aimed to build a stronger business capable of delivering industry-leading growth. Achieving that, he wrote, would require PepsiCo to become “faster, more connected, and more capable” while continuing to invest in its people, capabilities and brands.

PepsiCo had about 306,000 employees 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 planned layoffs.

The company’s North American beverage unit recorded a 2% drop in volume in the third quarter, while volume at its North American food division was flat. PepsiCo has sought to lift sales by lowering prices and increasing marketing investment, but the turnaround is taking longer than expected, CFO Steve Schmitt said on the company’s earnings call.

PepsiCo shares rose slightly in afternoon trading. The stock is down nearly 1% this year, compared with a gain of nearly 11% for the S&P 500 over the same period.