PepsiCo is laying off hundreds of corporate employees

PepsiCo is laying off hundreds of corporate employees from its North America snack and beverage units, per the Wall Street Journal, signaling global economic pressures extend beyond media and tech companies.

The job cut would “simplify the organization so we can operate more efficiently.”

The snack and beverage giant has planned to lay off employees in three headquarters locations, including the New York-based Purchase unit

Following PepsiCo’s snacks division’s voluntary retirement program, the beverage department would likely get more affected due to the layoff. The company’s workforce consists of 309,000 employees worldwide, with around 129,000 people working in its US-based offices.

The tightening economy has already forced food companies to increase the price of their products to offset their ingredients and other expenses.

As PepsiCo joins Walmart and Ford in trimming jobs, the layoffs are believed to be the beginning of a four-year-long restructuring plan that is estimated to cost the company millions of dollars in severance pay.