Elliott Pushes PepsiCo Into Massive Restructuring: 2026 Targets Unveiled Amid Cost-Cutting Wave

PepsiCo has entered into a formal collaboration with activist investor Elliott Investment Management, setting the stage for a comprehensive operational transformation aimed at unlocking shareholder returns. The beverage and snack giant plans to execute substantial cost-cutting measures, facility consolidations, and product line streamlining, along with revised financial forecasts for the coming year.

The company projects organic revenue growth ranging from 2 to 4 percent throughout 2026, bolstered by efficiency improvements and operating margin enhancements. CEO Ramon Laguarta highlighted that PepsiCo’s North American food division will serve as the primary driver for unprecedented productivity gains and margin optimization initiatives. The strategy encompasses refined pricing mechanisms to enhance market competitiveness, an expanded product development roadmap emphasizing cleaner compositions, and wide-ranging operational cost reductions.

To date, PepsiCo has shuttered three manufacturing facilities, idled multiple production lines, and plans to discontinue roughly one-fifth of its U.S. product portfolio before the start of 2026. Workforce adjustments accompanying these operational changes have also been announced as part of the broader restructuring initiative.

Looking ahead to fiscal 2026, PepsiCo anticipates total net revenue expansion of 4 to 6 percent, reinforced by strategic acquisitions, business divestitures, and advantageous foreign exchange movements. The company expects core earnings per share to climb 5 to 7 percent, or potentially 7 to 9 percent when factoring out the impact of global minimum tax regulations. Management commits to achieving record-level productivity improvements through technology deployment, process digitization, and organizational simplification, targeting a minimum of 100 basis points of margin expansion over a three-year horizon.

This restructuring marks a significant pivot as Elliott Investment Management leverages its stake to drive operational excellence and financial performance improvements at one of the world’s largest beverage and packaged food manufacturers.