Thread regarding PepsiCo Inc. (Pepsi) layoffs

PepsiCo doesn't publish a standalone "layoff budget." The number that functions as one is the restructuring envelope for the 2019 Productivity Plan, which was expanded and extended through 2030. Here's where it stands per the latest 10-Q (quarter ended June 13, 2026).
The envelope
Total expected pre-tax charges of about $6.15 billion, roughly $5.1 billion of it cash. The mix is about 50% severance and other employee-related costs, 15% non-cash asset impairments from plant closures, and 35% other implementation costs (contract terminations, consulting). That makes the severance line roughly $3.1B over the life of the plan.
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Segment split: PBNA 25%, EMEA 25%, PFNA 20%, Corporate 15%, LatAm Foods 10%, Asia Pacific Foods 3%, IB Franchise 2%. PBNA is the single biggest bucket, ~$1.5B.
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Spent vs. remaining
Budget Booked thru 6/13/26 Left
Severance / employee ~$3.1B ~$1.84B ~$1.2B
Asset impairments ~$0.9B ~$0.6B ~$0.3B
Other ~$2.15B ~$1.35B ~$0.8B
Total $6.15B ~$3.79B ~$2.4B
Basis: plan-to-date through 12/27/2025 was $3,610M — $1,789M severance, $546M impairments, $1,275M other, plus $182M booked in the first 24 weeks of 2026 ($51M severance, $59M impairments, $72M other).
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Run-rate
FY2025 was the heaviest year at $983M, vs. $727M in 2024 and $445M in 2023.
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H1 2026 charges fell to $182M from $426M a year earlier, and cash restructuring payments were $264M vs. $387M. Q2 alone was only ~$49M, and PBNA actually recorded a $15M credit in Q2 — a reversal of previously estimated amounts.
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The severance accrual on the balance sheet at year-end 2025 was $308M; $172M of severance cash went out in H1 2026.
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Three things worth noting
The December 2025 Elliott-era reset didn't come with a new envelope. After Elliott's $4B stake, PepsiCo announced North America workforce reductions and a 20% cut to U.S. SKUs with cost actions starting in 2026, and the HQ cuts targeted Chicago, Plano and Purchase — but $6.15B is unchanged in both 2026 10-Qs. The heavy booking happened in FY2025; H1 2026 P&L charges are the lightest in three years.
Layoff News Now
Resume Mansion LLC
The mix shifted toward physical footprint. The Q3 2025 filing put impairments at 10% of the plan; the 2026 filings say 15%. That lines up with the closures now landing: Cheverly, MD bottling — 143 laid off, manufacturing and warehouse ended Sept. 14, sales and delivery continuing; a Frito-Lay distribution plant in California earlier this year, 248 jobs; 105 permanent layoffs at PepsiCo Beverages Sales in Columbia, SC, last day Oct. 18. Those hit impairments and severance in H2 2026.
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~$2.4B total / ~$1.2B severance left to book over 4.5 years is a lower annual pace than 2024–25 unless the plan gets raised again. The December outlook targets a record year of productivity savings in 2026 and at least 100 bps of core operating margin expansion in aggregate over the next three fiscal years — if that requires more headcount action than the remaining envelope supports, expect the $6.15B to move in the FY2026 10-K