By Radarr Africa Business Desk
NEW YORK, November 11 (Radarr Africa) – PepsiCo plans to cut about 1,000 jobs in North America as sales of some of its drinks and snacks there have weakened, according to a message sent to staff by Ram Krishnan, chief executive of PepsiCo North America, on Monday.
Krishnan told employees on November 9 that management layers would be reduced and operations simplified.
PepsiCo’s third-quarter results showed the pressure on its home market. North American beverage volumes fell 2% from a year earlier, while food volumes were flat. The company cut prices on selected products, including Lay’s and Doritos, and increased its marketing. It also lowered its full-year earnings forecast in October.
KFC has chosen Coca-Cola to supply drinks to more than 3,600 of its US restaurants, ending a relationship with PepsiCo of nearly 40 years. PepsiCo remains KFC’s beverage supplier in international markets and has a 10-year US beverage agreement with Subway.
The picture was better outside North America. PepsiCo’s Europe, Middle East and Africa division reported $5.41 billion in third-quarter revenue. Organic revenue rose 9%, beverage volumes rose 4% and food volumes fell 1%.
