PepsiCo has announced it is cutting staff at its North American snacks and beverages units’ headquarters.

Hundreds of jobs will be lost as a part of the restructuring.

The layoffs affect the company’s beverage operations in Purchase, New York.

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The company’s North America snacks and packaged-foods business, with headquarters in Chicago and Plano, Texas, is the second division to be affected.

PepsiCo told workers in a memo the cuts were to “simplify the organization so we can operate more efficiently.”

Sources said the reductions are larger in the beverage business as the snacks division has recently reduced employees through a voluntary retirement program.

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Along with its namesake cola, PepsiCo makes Doritos, Lays potato chips, and Quaker Oats.

PepsiCo employed around 309,000 employees globally as of December 25 last year, including nearly 129,000 in the US.

PepsiCo and other food firms have had to put up prices to cover soaring costs for ingredients, transport, and labor.

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The cost reduction plan is to counter the pressure on profit margins and to weather what seemed to be deteriorating macroeconomic conditions 

Despite an uncertain economic outlook, the overall US labor market is historically tight, with companies fighting for a limited pool of staff and bidding up salaries.

PepsiCo joins other companies, including Walmart and Ford, that have been trimming white-collar workers even as they hold on to front-line staff. 

Meanwhile, an advertising slowdown has forced several media and tech firms to lay off employees.

Source: The Wall Street Journal

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