PepsiCo is signaling major structural cost cuts, including possible layoffs, as it works through a slow turnaround. In prepared remarks discussing mixed third quarter earnings on Thursday, executives said the company is identifying structural cost reduction actions that reduce redundancies and curtail discretionary expenditures, citing reductions in corporate costs and other initiatives not directly tied to growth, which will complement existing enterprise-wide productivity initiatives and begin to take effect in the coming months. The company also slashed its 2026 forecast for core earnings per share growth to 2.5%-3.5%, down from 5%-7%. PepsiCo said net revenue will come in at the high end of its range, up approximately 6%, amid momentum in zero-sugar drinks and healthier snacks. Shares rose 1% in premarket trading, though the stock is down 13% year to date compared to a 23% advance for rival Coca-Cola.
PepsiCo IncPepsiCo slashed its 2026 core EPS growth forecast to 2.5%-3.5% from 5%-7% and signaled structural cost cuts and possible layoffs.
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