PepsiCo plans to cut prices and eliminate some of its products under a deal with an activist investor announced 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% of its product offerings by early next year.

PepsiCo is making the changes after prodding by Elliott Investment Management, who took a $4 billion stake in the company in September. In a letter to PepsiCo’s board, Elliott said the company was being hurt by years of double-digit price increases.

Elliott said changing customer preferences combined with a lack of strategic clarity, decelerating growth and eroding profitability in its North American food and beverage businesses.

PepsiCo said it also plans to accelerate the intro

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