PEP, KHC, CAG Could Be Set to Sack Thousands of Workers, Warns Analyst

A number of consumer product groups could follow the lead of giant Procter & Gamble (PG) and lay off thousands of staff to save costs, warns a leading analyst.

Get Ready for More

Robert Moskow, an analyst at TD Cowen, reacting to P&G’s move this week to shed 7,000 jobs over the next two years, said the sector should “get ready for more” as it faces continued pressure from slower growth and higher costs.

He said that PepsiCo (PEP), KraftHeinz(KHC), and Conagra Brands (CAG) were most likely to consider making the same strategic decision given rising overheads.

Moskow pointed out that Conagra and Kraft Heinz have guided to organic sales growth below their long-term expectations and higher overhead costs compared to those of 3 years ago. He said that “Conagra will need to address stranded overheads in conjunction with divestitures of Chef Boyardee and its frozen fish brands.”

He added that PepsiCo also appears to operate with higher overhead costs and has the “highest need for reinvestment to improve the value equation of its brands.”

Investment Goals

However, whether these groups will be able to use cost savings to fund investment is doubtful.

Moskow said the P&G move was certainly not a catalyst for growth. P&G pointed to the importance of accelerating productivity to provide more tailwinds for growth investment. It also pointed to improvements it has made in automation and digitization.

“Given the likelihood that this environment continues in 2026, we suspect they will end up using the savings to protect earnings for the next 12 months rather than fund a material increase in brand investment,” Moskow said.

Is PEP a Good Stock to Buy Now?

On TipRanks, PEP has a Hold consensus based on 3 Buy and 10 hold ratings. Its highest price target is $169. PEP stock’s consensus price target is $148.33 implying an 14.58% upside.

See more PEP analyst ratings