PepsiCo plans to cut prices and eliminate some of its products under an agreement with a activist investor announced on Monday.

The Purchase, New York-based company, which makes Cheetos, Tostitos and other Frito-Lay products as well as beverages, said it will cut nearly 20 percent of its product offerings early next year. PepsiCo said it will use the savings to invest in marketing and improve value for consumers. He did not disclose which products or how much he would cut prices.

PepsiCo said it also plans to accelerate the introduction of new offerings with simpler, more functional ingredients, such as Doritos Protein and Simply NKD Cheetos and Doritos, which contain no artificial flavors or colors. The company also recently introduced a prebiotic version of its signature cola.

PepsiCo is making the changes after a push from Elliott Investment Management, which took a $4 billion stake in the company in September. In a letter to PepsiCo’s board, Elliott said the company is being hit by a lack of strategic clarity, slowing growth and eroding profitability in its US food and beverage businesses.

In a joint statement with PepsiCo on Monday, Elliott partner Marc Steinberg said the firm is confident PepsiCo can create shareholder value as it executes its new plan.

“We appreciate our partnership with PepsiCo’s management team and the urgency they have demonstrated,” Steinberg said. “We believe the plan announced today to invest in affordability, accelerate innovation and aggressively reduce costs will drive further revenue and profit growth.”

Elliott said he plans to continue working closely with the company.

Shares of PepsiCo were flat in after-hours trading on Monday.

PepsiCo said it expects organic revenue to grow 2% to 4% in 2026. The company’s organic revenue rose 1.5%. the first nine months of this year.

PepsiCo also said it plans to review its supply chain and continue to make changes to its board, focusing on global leaders who can help it achieve its growth and profitability goals.

“We are encouraged by the actions and initiatives we are urgently implementing to improve both market and financial performance,” PepsiCo President and CEO Ramon Laguarta said in a statement.

said PepsiCo in February that years of double-digit price increases and changing customer preferences have weakened demand for its beverages and snacks. In Julythe company said it was trying to combat the perception that its products are too expensive by expanding distribution of value brands like Chester’s and Santitas.