China News Service, December 6 (Xinhua) According to sources quoted by the "Wall Street Journal" on the 5th, the American catering giant PepsiCo will lay off hundreds of employees in the snack and beverage department of its North American headquarters.
It shows how companies are tightening their belts to cut costs beyond technology and social media.
According to reports, PepsiCo said in an internal document sent to employees that the purpose of the layoffs is to "simplify the organizational structure so that the company can operate more efficiently."
People familiar with the matter also said that the layoffs in the beverage business will be relatively large, because the snack department has already cut some positions through the "voluntary retirement plan".
It is reported that PepsiCo produces a variety of food products that consumers are familiar with, including Pepsi-Cola beverages, Doritos snacks, Lay's potato chips and Quaker oats.
As of December 25 last year, PepsiCo employed about 309,000 people worldwide, including 129,000 in the United States.
While inflation has raised the prices of many foods, general consumer demand for food and beverages remains strong.
PepsiCo and other food companies have been raising prices to offset higher costs for ingredients, transportation and labor.
After reporting sharp increases in the company's quarterly sales and profits, PepsiCo executives said in October that while the results were good, they would cut costs to ease pressure on margins and prepare for potentially worsening macroeconomic conditions .
In addition to PepsiCo, large companies such as Wal-Mart and Ford Motor have also begun to lay off white-collar workers while retaining front-line employees.