PepsiCo has joined the growing list of major US companies that are making changes to their diversity, equity and inclusion programmes as President Donald Trump pushes to dismantle the practice across the federal government and private sector.
The Frito-Lay to 7Up maker will end DEI workforce representation goals and transition its chief DEI officer to a broader role looking into associate engagement and leadership development, according to a memo to company associates.
The officer will also continue working on its 2021 'A Space to Be You' programme.
PepsiCo is revising its DEI programme as 2025 marks the end of its five-year strategy and it will introduce a new 'Inclusion for Growth' strategy, CEO Ramon Laguarta said in the memo.
DEI Policies
American corporations from Target to Alphabet-owned Google have either dropped or considered changing their DEI policies after Trump urged private-sector companies to end "illegal DEI discrimination and preferences".
Trump has also directed federal agencies to terminate DEI programmes and warned of cuts in federal funding for academic institutions and universities if they continue the policies.
PepsiCo is also expanding its supplier base by broadening opportunities for all small businesses to be a part of the company, according to the memo.
The snacks and beverages giant will also no longer participate in single demographic category surveys, the memo said.
Earlier this month, PepsiCo forecast annual profit below expectations and missed quarterly revenue estimates, as the Quaker Foods maker faces weakening demand for its sodas and snacks such as Lay's in the US, its largest market.
