PepsiCo is preparing to cut around 1,000 jobs across North America as the food and beverage giant struggles to revive sales in its home market. The announcement has also put the spotlight on Indian American executive Ram Krishnan, who leads the company’s North American business.
The planned layoffs are part of a broader effort to simplify operations, improve coordination between teams and strengthen the company’s performance. PepsiCo expects to implement the job cuts over the coming week.
Krishnan, CEO of PepsiCo North America, announced the restructuring in a Monday letter to employees obtained by CNBC.
“We have a clear ambition for PepsiCo North America: to build a stronger, more future-fit business that delivers industry-leading growth,” Ram Krishnan, CEO of PepsiCo North America, wrote in a Monday letter to employees obtained by CNBC. “To do that, we need to be faster, more connected, and more capable, while continuing to invest in growth — behind our people, capabilities and brands.”
The company says the restructuring will help it streamline its North American operations and bring its teams closer together. PepsiCo employs approximately 306,000 people worldwide, including around 125,000 in the United States, according to its company filing as of December 27, 2025.
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The layoffs come at a difficult time for the company. In October, PepsiCo lowered its full-year earnings outlook after reporting weaker performance in North America. During the third quarter, its North American beverage business recorded a 2% decline in volume, while its North American food division reported flat volume.
The company has been trying to attract consumers through price reductions and increased marketing investments. However, the turnaround has taken longer than expected, Chief Financial Officer Steve Schmitt said during the company’s earnings call.
PepsiCo’s struggles have also attracted investor attention. Activist investor Elliott Investment Management acquired an approximately $4 billion stake in the company a year earlier, adding pressure on the food and beverage giant to improve its performance and reduce costs.
Despite the announcement, PepsiCo shares rose slightly on Monday. However, the stock has fallen nearly 1% this year, compared with an almost 11% gain in the S&P 500 over the same period.
Who is Indian American CEO Ram Krishnan?
With the layoffs announced under his leadership, Ram Krishnan has come into the spotlight as one of the Indian American executives heading a major North American business.
Krishnan is the CEO of PepsiCo North America, overseeing the company’s food and beverage portfolio across the United States and Canada. He took on the position in December 2025 after previously leading PepsiCo’s U.S. beverage business.
His responsibilities include bringing the company’s food and beverage operations closer together, responding to changing consumer preferences and identifying opportunities for growth.
Krishnan joined PepsiCo in 2006 and has spent nearly two decades working across different divisions of the company. Over the years, he has held several senior leadership positions, including CEO of International Beverages and Chief Commercial Officer.
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Before taking charge of PepsiCo North America, he served as CEO of PepsiCo Beverages US, where he oversaw the company’s beverage operations and its Global Away From Home business. His portfolio included well-known brands such as Pepsi, Gatorade, Mountain Dew, Poppi, Propel, Starbucks and Lipton.
His career at PepsiCo has also taken him across international markets. Krishnan previously served as CEO of the Asia Pacific, Australia/New Zealand and China region, where he managed businesses across multiple markets.
He also led PepsiCo’s global Walmart customer team and served as Chief Marketing Officer of Frito-Lay North America. Before joining PepsiCo, he spent six years with General Motors’ Cadillac division.
Krishnan has received several awards for product innovation and advertising. He also serves on the board of directors of Tractor Supply Company.
He holds an MBA from the University of Michigan, along with bachelor’s and master’s degrees in engineering.
As PepsiCo works to address its weakening North American sales and reorganize its business, Krishnan faces the challenge of leading one of the company’s most important markets through a period of change.