PepsiCo Inc. reached an agreement with activist investor Elliott Investment Management to reduce its US product lineup by 20% and lower prices, while the company also pares its workforce.

The moves represent an early agreement with Elliott as the maker of Mountain Dew and Doritos seeks to recapture growth and win back investors. Elliott built up a roughly $4 billion stake earlier this year and clamored for changes, citing an overly complex portfolio of brands and a declining share of the beverage business.

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