PepsiCo, Inc. (PEP) Shutters Detroit Facility, Lays Off 83 Workers Amid Cost Cuts

We recently compiled a list of the 13 Best Major Stocks to Invest in Now. PepsiCo, Inc. stands seventh on our list.

PepsiCo, Inc. (NASDAQ:PEP), a global leader in food and beverages, is navigating a challenging business climate by streamlining operations and aligning its portfolio with evolving consumer preferences. In 2025, the company announced the closure of parts of its Detroit beverage facility, impacting 83 workers, as part of broader efforts to consolidate operations and match production with demand.

Strategically, PepsiCo, Inc. (NASDAQ:PEP) is focusing on healthier product offerings. It plans to relaunch its Frito-Lay’s Simply lineup in late 2025 or early 2026, removing artificial ingredients from snacks like Lay’s and Tostitos. The company is also expanding its health-focused portfolio through acquisitions like Siete Foods and boosting baked and multigrain snacks such as PopCorners and SunChips, reinforcing its place among the best major stocks for investors focused on innovation and adaptability.

Operationally, the business beat Q2 2025 earnings expectations, benefiting from international growth and favorable foreign exchange. However, flat beverage volumes in North America and ongoing cost pressures have prompted further efficiency initiatives. These include plant closures, productivity enhancements, contract reviews, and investments in enterprise resource planning systems.

On the market front, JPMorgan raised PepsiCo, Inc. (NASDAQ:PEP)’s price target from $139 to $157 in July 2025, citing cautious optimism amid the company’s cost-cutting and product innovation strategies.

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