PepsiCo is cutting approximately 1,000 jobs across North America as the company addresses weak sales in its home market. The layoffs will occur over the next week as part of a streamlining effort to strengthen North American operations, according to a letter from Ram Krishnan, CEO of PepsiCo North America, obtained by CNBC.
The company employs about 306,000 people worldwide, including roughly 125,000 in the United States as of December 27. PepsiCo's North American beverage unit saw volume shrink 2% during the third quarter, while its North American food division reported flat volume.
In October, PepsiCo cut its full-year earnings outlook due to struggles in its home market. Chief Financial Officer Steve Schmitt said on the company's earnings conference call that despite efforts to boost sales through price cuts and marketing investments, the turnaround is taking longer than expected.
PepsiCo shares rose slightly in afternoon trading. The stock is down nearly 1% this year, while the S&P 500 has gained nearly 11% over the same period.