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PepsiCo Unveils U.S. Reset With Targeted Price Cuts and 20% SKU Reduction

The move follows pressure from Elliott after a $4 billion stake disclosed in September.

Overview

  • PepsiCo will remove nearly 20% of its U.S. product lineup by early 2026 to simplify operations and free resources.
  • Select items will see targeted price reductions, with cost savings redirected to advertising and improved everyday value, though specific products and cut sizes were not disclosed.
  • A North America supply‑chain review and a board refresh are underway as part of efforts to boost growth and margins, without granting Elliott a board seat.
  • Employees were told structural changes will affect some roles, and multiple reports indicate layoffs are being prepared following closures of three plants and several manufacturing lines this year.
  • The company guided to 2%–4% organic revenue growth in fiscal 2026 and is accelerating cleaner‑label launches such as Doritos Protein and Simply NKD Cheetos and Doritos.