PepsiCo is reportedly preparing to layoff hundreds of workers at headquarters in Illinois, New York and Texas.
The company behind Pepsi, Mountain Dew, Gatorade, and Lays brands is apparently looking to "simplify" the organization.
The job cuts will reportedly affect corporate workers at its North American beverage, snacks and packaged-foods divisions.
According to a memo seen by the Wall Street Journal, PepsiCo's plan is to "simplify the organization so we can operate more efficiently."
Pepsi has not publicly confirmed the layoffs.
PepsiCo employs roughly 129,000 workers across the country, so laying off a few hundred workers wouldn't be a huge numerically. But Tom Essaye, president of Sevens Report Research, told The Washington Post the move signals the head winds to come.
"This is really confirming so many other signs that we are headed toward a potentially pretty significant economic slowdown," he said.
Retail analyst Neil Saunders also called the layoffs "more ominous."
"If a company performing well, with earnings and revenue up solidly in recent quarters, is reducing its workforce then it is likely others will be considering similar moves," he told The Post.
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