PepsiCo Shares Recover Nearly All 2026 Losses Amid Planned Job Cuts

PepsiCo intends to eliminate around 1,000 positions across North America. The move comes a month after the company reduced its 2026 profit outlook following another disappointing quarter in the region, particularly in its beverage segment.

Over that same period, PepsiCo shares have seen a strong rebound. After dropping nearly 12% for 2026 in early October, the stock closed November 9 only 1.14% lower.

Where PepsiCo’s North American Plan Is Running Behind

Ram Krishnan, who leads PepsiCo North America, informed staff of the cuts in a Monday memo. The message described the reductions as a method to streamline the company's operations and strengthen team connections. The Wall Street Journal was the first to report the 1,000-job figure.

“The goal is to move faster, execute better, and invest behind the opportunities that will drive our growth,” Krishnan said.

The job cuts at PepsiCo represent less than 1% of the company's roughly 125,000 US employees.

In February, the firm reduced prices by as much as 15% on brands like Lay's and Doritos. Despite that, third-quarter North American beverage volume declined 2%, while food volume remained flat.

Chief Financial Officer Steve Schmitt noted in October that the recovery was progressing more slowly than expected. The company also revised its 2026 adjusted earnings per share (EPS) growth forecast down to 1% to 2%. Its previous target was the lower end of the 4% to 6% range.

PepsiCo Stock Has Run Ahead of Its Margins

That forecast reduction came one year after activist investor Elliott Investment Management acquired a roughly $4 billion stake in PepsiCo. Following discussions with Elliott, management committed to at least 100 basis points of core operating margin expansion over three years.

In reality, core operating margin dropped to 16.9% in the third quarter, compared with 17.3% a year earlier. In October, the company promised more aggressive cost reductions to offset weak demand.

Investors have not waited for those results. The stock closed Monday at $141.88, a 12.63% gain from around $125.97 a month ago.

Shares also offer a 4.17% yield. A yield near 4% was one reason the stock became Jim Cramer's PepsiCo pick in August, along with declining oil prices.