PepsiCo confirmed on 9 December 2025 that it has started a broad cost-cutting plan in the United States and Canada as part of a supply chain review triggered by talks with Elliott Investment Management. The company said the steps matter now due to shifting consumer demand and investor pressure.
What changed in PepsiCo’s restructuring plan
PepsiCo began the review after weeks of discussions with Elliott, which disclosed a $4 billion stake in September. The company is assessing an integrated operating model and has started reducing its North American workforce. It will also streamline supply operations across regions.
PepsiCo plans to cut nearly 20% of its U.S. product lines by early next year. Several manufacturing lines will close as the company simplifies its portfolio.
Impact on workers, supply chains and product lines
The changes will affect roles in both the United States and Canada. PepsiCo said the plan focuses on affordability, simpler ingredients and operational efficiency. The strategy responds to slower demand in categories influenced by health-focused buying and inflation-driven shifts to smaller pack sizes.
The review also covers discussions on refranchising or spinning off bottling operations. Elliott has pushed for divestment of non-core food assets, according to prior disclosures.
Statements and data from the companies
Marc Steinberg of Elliott said the firm expects PepsiCo to create value as the plan proceeds. PepsiCo stated it aims for at least 100 basis points of core operating margin expansion over the next three fiscal years through automation and digitisation.
CEO Ramon Laguarta described earlier exchanges with Elliott as collaborative in October but did not commit to a bottling spin-off.
What PepsiCo plans next?
PepsiCo will give a detailed update on the supply chain review in late 2026. The restructuring will continue as the company responds to evolving consumer demand and competitive pressure from Coca-Cola.
