The letter described a goal of building what Krishnan called a "stronger, more future-fit business that delivers industry-leading growth." PepsiCo wants to better connect teams across its North American operation, which runs both its beverage and snack businesses.
The memo did not say which roles would be cut. But the timing tells part of the story.
PepsiCo has been struggling with weak demand in the United States and Canada, and the job cuts signal that management has decided the situation calls for more than price adjustments and marketing spending.
What PepsiCo’s memo told employees
Krishnan’s letter, as reported by CNBC, did not name the specific roles or divisions that would lose positions. PepsiCo has not issued a public statement beyond what the memo contained. The company employs about 125,000 people in the United States, according to a company filing, and roughly 306,000 globally.