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PepsiCo to Cut Prices, Drop 20% of U.S. Products in Elliott-Driven Overhaul

Activist pressure from Elliott prompted the reset to counter soft demand after steep price increases.

Overview

  • PepsiCo will accelerate launches of simpler-ingredient offerings such as Doritos Protein and the Simply NKD Cheetos and Doritos lines.
  • The company is conducting a North America supply-chain review after closing three plants and shuttering several manufacturing lines this year.
  • Structural changes that include layoffs are planned, with employees in multiple offices told to work remotely as roles affected have not been disclosed.
  • Elliott holds a roughly $4 billion stake, continues to engage without a board seat, and welcomed PepsiCo’s commitment to board refreshment.
  • Management guided to 2%–4% organic revenue growth in fiscal 2026 and targets productivity savings and margin improvement beginning next year.