Two bags of Lay's potato chips and a person holding a can of Pepsi.

By Chris Spiker From Daily Voice

The company behind Pepsi, Lay's potato chips, and Tropicana juices is preparing to slash products and lower its prices in a major reset to revive slowing sales.

PepsiCo will remove nearly 20% of its US products by early 2026, the company said in a news release on Monday, Dec. 8. The food and beverage giant told investors that it will cut food prices in 2026 and rely on cost savings from layoffs, plant closures, and manufacturing line shutdowns.

CEO Ramon Laguarta said that PepsiCo will try to "accelerate organic revenue growth" and "deliver record productivity savings."

"PepsiCo Foods North America will play a critical role towards achieving these targets, and we feel encouraged about the actions and initiatives we are implementing with urgency to improve both marketplace and financial performance," Laguarta said.

The announcement comes after PepsiCo reached a $4 billion deal with activist investor Elliott Investment Management, The Wall Street Journal reported.

"We believe the plan announced today to invest in affordability, accelerate innovation, and aggressively reduce costs will drive greater revenue and profit growth," said Marc Steinberg, a partner at Elliott. "In addition, we welcome the comprehensive review of PepsiCo's North America supply chain and go-to-market systems, as well as PepsiCo's commitment to board refreshment. We are confident that PepsiCo will create substantial value for shareholders as it executes on this plan, and we look forward to continued engagement with the company."

A Pepsi soda can.

A Pepsi soda can.

Unsplash - NIKHIL

The product pullback is in response to falling consumer sentiment throughout 2025, as families slash budgets amid stubborn inflation and President Donald Trump's tariffs.

"There's a big reset of affordability because we see the consumer struggling in the US and in many Western countries," Laguarta told the WSJ.

Even as it dramatically reduces its products, PepsiCo is rolling out new items as part of the food and beverage industry's shift toward removing artificial dyes and ingredients. The company recently launched colorless versions of Cheetos and Doritos called Simply NKD, along with reformulating Lay's chips and releasing Doritos Protein in 2026.

Packaging for Cheetos Simply NKD Puffs, Cheetos® Simply NKD Flamin’ Hot, Doritos Simply NKD Nacho Cheese, Doritos Simply NKD Cool Ranch.

Packaging for Cheetos Simply NKD Puffs, Cheetos® Simply NKD Flamin’ Hot, Doritos Simply NKD Nacho Cheese, Doritos Simply NKD Cool Ranch.

Pepsico

The changes come as PepsiCo told employees at its main corporate offices — including in Purchase, New York — to work from home this week, a move often seen before layoffs, Bloomberg reported.

"We will be making structural changes to our business that will affect some roles in the company," Jennifer Wells, PepsiCo's North American chief people officer, said in a message to workers.

The company has already cut jobs in 2025. In November, PepsiCo said it would close Frito-Lay facilities in Orlando and lay off more than 450 workers, calling the move "driven by business needs."

PepsiCo hasn't announced which US products will be discontinued.