PepsiCo Plans Layoffs, Will Cut US Products by 20% in Overhaul

PepsiCo Inc. reached an agreement with activist investor Elliott Investment Management that includes a 20% reduction in its US product lineup and a sharper focus on affordability, while the soda and snacks company also plans layoffs as part of cost reduction efforts.

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.

PepsiCo shares were little ...