KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
PepsiCo Inc has reached an agreement with activist investor Elliott Investment Management that includes plans to slash its US product lineup by 20% and step up its focus on affordability, while also preparing layoffs as part of a broader cost-cutting push.
The deal marks an early resolution between PepsiCo and Elliott, which built a roughly US$4 billion stake earlier this year and publicly pushed for changes, arguing the company’s sprawling brand portfolio and weakening beverage share were holding back performance.
PepsiCo shares were little changed in late trading. The stock is down 4.2% year-to-date through Monday, compared with a 16% gain for the S&P 500.
Elliott Pushes Simplification and Margin Improvement
Marc Steinberg, partner at Elliott, said the agreed-upon plan “will drive greater revenue and profit growth.” Elliott will continue to engage with PepsiCo but did not secure a board seat as part of the agreement.
PepsiCo also offered updated guidance, projecting 2% to 4% organic revenue growth in FY2026, compared with analysts’ consensus of about 2.7%. Organic growth excludes acquisitions and currency effects.
The company did not specify which products will be discontinued. However, Elliott has advocated for simplifying the drinks portfolio by potentially selling brands such as SodaStream and Starry, and for sharpening PepsiCo’s focus on core salty snacks. Cereals such as Life, Cap’n Crunch, as well as Quaker Oats and Rice-A-Roni, have also been mentioned as potential divestiture candidates.
Layoffs Expected as Cost Cuts Deepen
PepsiCo has instructed employees at several North American offices, including its Purchase, New York headquarters, to work remotely this week — a move often seen ahead of corporate layoff announcements.
“We will be making structural changes to our business that will affect some roles,” Jennifer Wells, PepsiCo’s North America chief people officer, said in a memo viewed by Bloomberg.
The planned workforce cuts align with CEO Ramon Laguarta’s strategy to reduce costs and streamline operations. PepsiCo has already begun trimming its footprint: in November, it announced the closure of Frito-Lay facilities in Orlando, resulting in more than 450 layoffs.
Portfolio Refresh Already Underway
Even before Elliott’s involvement, PepsiCo had started revamping its product lines. The company reformulated its Lay’s barbecue chips to remove artificial dyes and launched new Doritos and Cheetos versions made without synthetic colouring. It has also expanded offerings with higher protein and fibre content.
In November, PepsiCo also appointed former Walmart executive Steve Schmitt as chief financial officer, replacing longtime CFO Jamie Caulfield.
Key Takeaways
PepsiCo reached an agreement with Elliott that includes a 20% reduction in its US product lineup and a stronger focus on affordability.
Layoffs are expected, with employees told to work remotely as the company prepares “structural changes.”
Elliott, which has a US$4b stake, pressed for simplification of PepsiCo’s portfolio and better profitability.
PepsiCo expects 2%–4% organic growth in FY2026.
Potential divestiture targets include SodaStream, Starry, Quaker foods and certain cereal brands.
PepsiCo has already begun updating products, removing synthetic dyes and expanding healthier options.
More than 450 jobs were cut in November with the Frito-Lay facility closures.
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