PepsiCo, one of the world’s largest food and beverage companies behind iconic brands like Lay’s, Doritos and Pepsi-Cola, is undertaking a major restructuring of its U.S. business as consumer demand softens and cost pressures mount. The moves, announced as part of the company’s 2026 strategic plan, include significant product cuts and multiple facility closures.
Streamlining the product lineup
In December 2025, PepsiCo revealed plans to eliminate nearly 20% of its U.S. product offerings by early 2026 as part of a broader effort to sharpen its portfolio, improve affordability, and boost core growth. The reduction will simplify PepsiCo’s internal operations and allow the company to focus on higher-velocity core snacks and beverages, executives said. (The names of the products being cut from PepsiCo’s offerings haven’t yet been revealed.)
Chairman and CEO Ramon Laguarta framed the changes as necessary to “accelerate organic revenue growth, deliver record productivity savings and improve core operating margin,” adding that the company is acting with urgency amid evolving consumer trends and activist investor pressure.
Plant closures and job impacts
As part of the restructuring, PepsiCo has closed or announced the closure of multiple manufacturing and distribution facilities across the U.S. In California, a Frito-Lay distribution plant in Rancho Cucamonga is set to shut down by June 6, 2026, resulting in about 248 layoffs.
PepsiCo has also shuttered facilities in Florida and New York and discontinued operations at several bottling and production sites in recent years — actions tied to lagging demand for traditional snack products and the need to optimize the company’s production footprint.
Responding to consumer shifts
The company’s latest earnings materials also note declines in volume for North America food and beverage categories, a dynamic that has contributed to the strategic shift. PepsiCo hopes that by reducing complexity and focusing on value-driven and health-oriented offerings (it just released prebiotic soda), it can reinvigorate consumer interest and increase purchase frequency.
Looking ahead
While these moves represent a significant pivot for the snack and soda giant, PepsiCo executives have indicated that the company anticipates modest growth in organic revenue and expanding profit margins in 2026, supported by the portfolio reshaping and operational efficiencies.
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