PepsiCo plans to cut about 1,000 jobs across North America as the food and beverage giant struggles to revive sales in its home market, even as revenue from its Europe, Middle East and Africa (EMEA) business rose to $5.41 billion in the third quarter of 2026.
- PepsiCo plans to cut about 1,000 North American jobs due to weak sales and a company-wide restructuring effort.
- Despite challenges in North America, revenue in PepsiCo’s Europe, Middle East, and Africa (EMEA) division rose to $5.41 billion in Q3 2026, up 7.8% year-over-year.
- PepsiCo secured a 10-year deal with Subway to become its exclusive US beverage supplier, despite losses in other US food service contracts.
- Internationally, PepsiCo maintained or grew market share in its beverage and snack businesses, although food sales in South Africa showed continued weakness despite a significant presence in the country.
The layoffs, first reported by The Wall Street Journal on November 9, follow PepsiCo’s decision to lower its annual earnings outlook in October amid weaker North American sales.
According to its latest financial results, revenue from Europe, the Middle East and Africa (EMEA) rose 7.8% to $5.41 billion in the third quarter of 2026, while North American beverage sales volumes declined 2% and food volumes remained flat.
PepsiCo cuts jobs as North American sales struggle
The planned job cuts will affect PepsiCo’s North American food and beverage operations during the week of November 9, 2026, although the company has not identified the countries or locations involved.
As at the end of 2025, PepsiCo employed about 306,000 people worldwide, including 125,000 in the United States, according to its annual report filed with the US Securities and Exchange Commission (SEC).
In a letter to employees, Ram Krishnan, chief executive of PepsiCo North America, outlined plans to simplify the company’s structure and strengthen its ability to respond to changing market conditions.
“We have a clear ambition for PepsiCo North America: to build a stronger, more future-fit business that delivers industry-leading growth,” Krishnan wrote.
“To do that, we need to be faster, more connected, and more capable, while continuing to invest in growth — behind our people, capabilities and brands.”.
Pepsi loses brand value as Coca-Cola gains major contracts
Pepsi remained the world’s second-most valuable non-alcoholic drinks brand behind Coca-Cola in Brand Finance’s 2026 ranking, despite a 25.4% decline in brand value from $22.5 billion to $16.8 billion.
PepsiCo also lost major beverage supply contracts, including KFC’s decision to switch to Coca-Cola across more than 3,600 US restaurants after nearly four decades. The transition begins in January 2027, while Costco food courts and Marriott hotels have also switched to Coca-Cola.
However, PepsiCo secured a 10-year agreement to replace Coca-Cola as Subway’s exclusive US beverage supplier, beginning in 2025.
Internationally, PepsiCo reported stable or increased beverage market share in the UK, Egypt, India and Pakistan during the first half of 2026, alongside similar performance in its snack business across China, Saudi Arabia, Egypt and Australia.
Europe, Middle East and Africa revenue rises to $5.41 billion
PepsiCo’s Europe, Middle East and Africa (EMEA) division generated $5.41 billion in revenue during the third quarter of 2026, up 7.8% from the same period in 2025, while operating profit increased by 25%.
Despite regional growth, South Africa recorded weaker food sales volumes, reflecting differences in performance across PepsiCo’s international markets.
The company expanded its African operations through its $1.7 billion acquisition of South Africa’s Pioneer Foods in 2020, although revenue from the country declined 4.9% from $1.86 billion in 2024 to $1.77 billion in 2025.
PepsiCo has not disclosed separate South African revenue figures for 2026, but its third-quarter results showed continued weakness in food sales volumes despite growth across the wider EMEA region.
