Particle.news
Download on the App Store

PepsiCo Unveils Reset With Price Cuts, 20% U.S. SKU Culling and Workforce Changes

The overhaul follows pressure from Elliott Investment Management, channeling savings into lower everyday prices.

Overview

  • PepsiCo will drop nearly 20% of U.S. SKUs by early 2026, though it has not disclosed which items will go or the scale of price reductions.
  • The company plans targeted price investments that CEO Ramon Laguarta said were tested with major retailers and are expected to lift volumes.
  • New offerings will emphasize simpler, cleaner ingredients, including Simply NKD Cheetos and Doritos and a planned Doritos Protein line.
  • PepsiCo is driving automation and a North America supply-chain review, has closed three U.S. plants and several lines, and is preparing unspecified layoffs after remote-work directives to office staff.
  • Backed by Elliott’s roughly $4 billion stake and ongoing engagement without a board seat, PepsiCo guided to 2%–4% organic revenue growth in 2026 with expected margin gains from cost cuts.