PepsiCo is implementing significant operational changes, including facility closures and workforce reductions, amid evolving consumer preferences in North America. While the company’s recent quarterly performance exceeded market expectations, underlying data reveals a concerning pattern: Americans are purchasing fewer chips and salty snacks. This development raises questions about whether PepsiCo confronts a structural challenge that extends beyond what cost-cutting measures can resolve.
Leadership Transition and Brand Evolution
Amid operational challenges, PepsiCo is undergoing leadership changes. On November 10, 2025, Steve Schmitt assumed the role of Chief Financial Officer, succeeding departing executive Jamie Caulfield. Additionally, in late October, the corporation introduced a refreshed brand identity aimed at positioning itself more broadly than its traditional “Pepsi-Cola” image.
These strategic moves coincide with fundamental shifts in consumer behavior that are impacting the company’s core snack business. Despite reporting stronger-than-anticipated quarterly results on October 8, 2025—with earnings per share reaching $2.29 and revenue hitting $23.94 billion—PepsiCo’s Frito-Lay division has demonstrated worrying trends. Both product volume and revenue within this segment have declined by 2 percent through 2025.
Workforce Reduction and Facility Closures
On November 7, 2025, PepsiCo formally confirmed the shutdown of two Frito-Lay facilities in Orlando, Florida, affecting approximately 500 employees. A manufacturing plant and adjacent distribution center ceased operations on November 4, resulting in 454 job losses. A separate external warehouse employing 46 staff members will close by May 2026 at the latest.
Should investors sell immediately? Or is it worth buying Pepsi?
Company representatives described the decision as “difficult” but necessary due to “business requirements.” These closures follow previous production facility shutdowns in New York and California, indicating challenges that extend beyond regional market conditions.
Discover More: Interested in companies successfully navigating market transitions? Our complimentary premium analysis highlights three organizations that have transformed into strong performance generators through strategic adaptation. Access your free ‘Companies in Transition’ report today
Strategic Responses to Changing Demand
PepsiCo is implementing several initiatives to address declining snack consumption. The company has introduced product modifications including alternative oils such as olive and avocado oil, eliminated artificial additives, and developed smaller, more affordable package sizes to attract price-sensitive consumers. Whether these adjustments will reverse the downward trend remains uncertain.
Market experts currently rate PepsiCo shares between “Hold” and “Moderate Buy,” reflecting market uncertainty about the company’s direction. The crucial test will come when fourth-quarter and full-year 2025 results are released in February 2026. These figures will reveal whether current restructuring efforts are proving effective or if more extensive operational changes will be necessary.
Ad
Pepsi Stock: Buy or Sell?! New Pepsi Analysis from November 8 delivers the answer:
The latest Pepsi figures speak for themselves: Urgent action needed for Pepsi investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 8.
Pepsi: Buy or sell? Read more here...
