November was the last we’ve heard for major restructuring. It’s gone very, very quiet. Big operational changes are coming if you listened to the Q3 townhall, that has to be soon. Ramon owes Elliot a plan by end of year per some reports. Thinking it has to be significant as Elliott has been silent even though other analyst are bearish on the company and questioning the structure and plans. Ramon has been quiet since his earnings call and subsequent news appearances saying all options are on the table. Ram seemed extremely uncomfortable and not very confident in yesterday’s blatantly forced and scripted townhall production. I’m not really believing PEPNA is going to be the path forward anymore. I have a really strong feeling Ramon is going to be out by Q1, Ram might be with him. I expect Capstone to fully move forward, greatly reducing our WH supply chain and headcount. I think that is where you will see the big reorg coming. Check the number of job postings for Capstone, especially in major Pepsi markets. Delivery at some point will also be subbed to a 3rd party logistics. Production will stay and be centralized to much larger sites, this will allow Pepsi to control the concentrate supply. Sales/Merch/Marketing could easily stay as PepsiCo or be refranchised, this seems 50/50 right now. Fleet goes 3rd party, HR and safety all centralized and reduced. Equipment services can be easily purchased by a larger service company. S&T will be gutted. IT already outsourced. What am I missing? Admins already being outsourced.
16 replies (most recent on top)
@ca You have executives doing expense reports, putting meetings together, researching for prep for their own meetings, ordering supplies, paying bills..... And all because they keep cutting the cheapest labor. Admins run companies. Whoever doesn't believe that is insane.
@aa absolutely it will be outsourced. Think of all the $$$ the company will save in overhead and equipment. Smart business decision. Just apply to whomever they outsource to and you will be a rockstar (no pun intended).
RAMON blows
@ad the problem with ramon and ram owning bottling is they have 3-5x cost overrun on building and renovating, see the recent article on project mustang
Green energy mandates, all sorts of crazy requirements
Once they spend that much capital up front no amount of operating cost savings helps.
All the cost overruns will need to be written off and assets sold. New owners can build things in a sensible way
@cj they are the last of the payroll admin they create the tickets for Mexico and India to process. honestly there is no need for them the management puts everything in a spreadsheet to move someone to an new role then the HRAC creates a ticket with that same info. the manager should just create the ticket
@by is this payroll admins or HR admins? Are payroll admins notified their jobs are moved to India/mexico
Ramon is THE WORST CEO PepsiCo has ever had. He fired all the admins & now karma is now finally catching up with him. Serves him right… Fingers crossed he out by Q1!!!
Run a route in rural Missouri. Ran into the franchise bottler and he said there owner told them they got the checkbook ready if Pepsi comes knocking to sell territory. Pretty sure I make alot more than the guy doing my job for them.
I dont understand why we are loosing American jobs and Ramon keeps expanding his expensive S&T Barcelona hub! what value does it bring to all of us?
when will all of thr HRAC admins be gone
@ah it’s about the net profit. PepsiCo profit is diluted through layers of operating costs. They can outsource functions at fixed contract prices as well as pass off risk. Outsourcing drives competition amongst suppliers and PepsiCo can leverage that competition for better costs. Also, if Bottlers and 3rd parties that are private companies, while profit motivated, don’t have the same quarterly pressures and dividend expectations that PepsiCo does, they can absorb a softer quarter or year for that matter.
It is difficult to understand how they could increase revenue solely by selling concentrate. This strategy appears illogical, especially considering that the current price for a 20-ounce product is exceedingly high.
@aa I think at some point it’s either back to a franchise bottler or a third party logistics company. The pressure is for Pepsi is to be a concentrate company and maximize profit to shareholders. One of the biggest liability risks is drivers between self insurance, wage inflation, and benefits. If Pepsi could, they would have trucks automated tomorrow, they would replace every employee for that matter if it meant raising the stock price and dividends. I truly believe Ramon and Ram do not care about their people and would sell them off for the right price. They have already done it to roles that could be shipped to India and overseas why would they stop? Their actions speak louder than their current LACK of words.
Do you think Delivery will really go away?
Not just capstone but Ryder logistics and others like UNIS. Look up PepsiCo UNIS on YouTube and you will see. Also read this article and you will see how long 3PLs and E80 have been with the company. Even in the same warehouse in Canada 🇨🇦 and now America 🇺🇸!
https://www.linkedin.com/posts/ron-clark-9b601427_pepsicocanada-pepsicoproud-supplychain2025-activity-7320475634818781185-4rRN
You forgot compliance and finance. Compliance will double since all we do is add red tape and roadblocks. Finance is needed to keep writing down all Ramon’s bad investments.