PepsiCo Plans Layoffs as It Looks to Wrap Up Elliott Talks

Core Insights - PepsiCo Inc. has reached an agreement with activist investor Elliott Investment Management to streamline its product lineup by 20% and reduce prices, while also cutting its workforce to regain growth and investor confidence [1] - The company projects organic revenue growth of 2% to 4% for fiscal 2026, slightly above the average analyst estimate of 2.7% [2] - PepsiCo's stock has seen a decline of 4.2% year-to-date, contrasting with a 16% gain in the S&P 500 Index [3] Strategic Initiatives - CEO Ramon Laguarta stated that savings from increased productivity will be reinvested to lower prices on key brands, which is expected to boost sales volumes [4] - The company plans to introduce new products that are higher in fiber and protein, while also reducing artificial ingredients and sugar levels [4] - Analysts noted that while Elliott's involvement has heightened the urgency for PepsiCo to execute its strategy, the fundamental strategy was already in place prior to Elliott's engagement [5] Investor Engagement - Elliott Investment Management believes the new plan will enhance revenue and profit growth, and will continue to engage with PepsiCo moving forward [6]