PepsiCo Overhauls Its Global Playbook as Shares Sit Near a Yearly Floor

PepsiCo ends manufacturing at its Cheverly, Maryland site, cutting 143 jobs, and elects Johnson & Johnson CEO Joaquin Duato to its board.

PepsiCo is pressing ahead with a twin restructuring effort that touches both its physical footprint and its marketing machine. On the industrial side, the company has pulled the plug on manufacturing and warehousing at its long-standing Cheverly facility in Maryland after more than six decades of operation. The move puts 143 employees out of work, with the layoffs taking effect on November 13. Local sales and delivery operations will remain in place, according to the company.

Management pointed to shifting customer demand, technological adjustments and a broader reworking of its network as the reasons behind the decision. Cheverly is not an isolated case. Frito-Lay had already halted production at its Orlando site in May, affecting 500 workers, and followed that with a shutdown in Rancho Cucamonga in June that hit roughly 250 people.

A Board Seat for a Healthcare Heavyweight

PepsiCo also moved to strengthen its oversight structure. Joaquin Duato, chairman and chief executive of Johnson & Johnson, was elected as an independent member of the company's Board of Directors, effective December 1, 2026. A regulatory filing with the U.S. Securities and Exchange Commission shows that Duato will simultaneously take a seat on PepsiCo's Audit Committee from that date, folding leadership experience from a global corporate giant into the snack-and-beverage maker's governance.

His appointment lands roughly two weeks after PepsiCo handed its worldwide media account to Publicis Groupe, ending a relationship with Omnicom Media that had spanned more than 25 years. Notably, the Publicis win came without a formal pitch process.

The new arrangement centers on building a data- and AI-driven media model called "One PepsiCo," to be rolled out globally and covering major brands including Pepsi, Gatorade and Lay's. The consolidated approach is designed to align media planning and buying more tightly across product categories and regions. The stakes are substantial: the account spans more than 200 markets, and press reports put PepsiCo's annual global advertising and media spend at an estimated $1.9 billion. North America alone accounts for an estimated $780 million of that outlay each year.

Home-Market Pressure Weighs on the Top Line

The operational picture at home has been soft. In the second quarter of 2026, worldwide net revenue climbed 6.4% to $24.18 billion, yet the PepsiCo Foods North America division posted a 2.0% sales decline. PepsiCo Beverages North America managed 7.0% revenue growth, but volumes slipped 4.0% over the same stretch. More than a month ago, the company also trimmed its U.S. food portfolio.

Investors have taken note. The stock closed yesterday at EUR 113.12 after touching a fresh 52-week low of EUR 111.52 during the session. It currently trades at EUR 113.22, just 1.5% above its yearly trough of EUR 111.56.

To shore up capital returns, PepsiCo is running a $10 billion share buyback program that extends through February 2030, while continuing to pour money into international growth markets.

Attention now shifts to the next hard data point. PepsiCo will report third-quarter 2026 results on Thursday, October 8, 2026, giving investors a clearer read on how the business is performing and what financial momentum the recent organizational moves are generating.