PepsiCo Cuts 1,000 North American Jobs Despite $5.41 Billion EMEA Revenue
PepsiCo plans to cut approximately 1,000 jobs across its North American food and beverage operations as it battles weak sales and intensifying competition from Coca-Cola. The restructuring follows the company’s decision to lower its annual earnings outlook in October 2026. While North American beverage sales volumes fell by 2% in the third quarter, food volumes remained flat, prompting management to simplify operations and improve efficiency.
Despite the challenges, PepsiCo’s Europe, Middle East and Africa (EMEA) division recorded $5.41 billion in third-quarter revenue, representing a 7.8% increase year-on-year, while operating profit rose by 25%. The company also maintained or expanded market share in several international markets, including the UK, Egypt, India and Pakistan. However, its South African food business continued to struggle, with the company’s revenue in the country falling from $1.86 billion in 2024 to $1.77 billion in 2025.
PepsiCo’s North American challenges also include losing major beverage supply contracts to Coca-Cola, including KFC’s decision to switch suppliers across more than 3,600 US restaurants from January 2027. The Pepsi brand’s value also fell by 25.4% in Brand Finance’s 2026 ranking, dropping from $22.5 billion to $16.8 billion. However, the company secured a 10-year agreement to become Subway’s exclusive beverage supplier in the United States, beginning in 2025.
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