Up until now, the majority of layoffs have been focused in technology firms and banks, as talking heads proclaim 'the consumer is still strong'.
However, tonight's news that no lesser staple than PepsiCo is to announce a major belt-tightening suggests the pain is spreading much more broadly across the US economy.
the BLS will need a +10 million birth death adjustment soon to keep their BS going https://t.co/WZZ8WIsKzi
— zerohedge (@zerohedge) December 5, 2022
This decision comes just a few weeks after the company announced it had raised prices on its snacks and drinks by 17% on average from last year.
“The consumer has very much stuck with our products,” said Hugh Johnston, PepsiCo’s finance chief, in an interview.
“In a world where there are many struggles and stresses, we are kind of an affordable luxury.”
...
“There may be a point when the revenue growth slows down,” Mr. Johnston said. He added: “We just have to be prepared for it.”
Do the layoffs mean that the consumer is cutting back further? Or have margins been crushed even more by inflation?
Are Doritos now out of reach for the average joe?
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