PepsiCo Inc. reached an agreement with activist investor Elliott Investment Management to reduce its U.S. 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.

The company also offered an updated outlook for next year, projecting organic revenue growth of 2% to 4% in fiscal 2026, versus an average analyst estimate of nearly 2.7%. Organic growth, a key measure for investors, excludes items such as acquisitions and currency volatility.

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