Good morning, CFOs. The government shutdown is affecting businesses; the unofficial job numbers have "clearly deteriorated,” one economist says; plus, PepsiCo names Walmart exec Steve Schmitt finance chief as Jamie Caulfield retires.

Businesses nationwide are starting to feel the pain from the U.S. government shutdown.

Here are some of the latest examples of companies and businesses feeling the pinch:

• An Alameda, Calif., medical-device company postponed a planned spinoff, unable to pursue regulatory approvals.
• A Florida marketing company laid off five employees after receiving a stop-work order on a federal contract.
• A Minnesota subcontractor is trying to keep a half-dozen electricians working while it waits for a stalled government contract.

The shutdown is disrupting business as usual in many ways—and reinforcing just how many private-sector operations depend on a federal bureaucracy humming on all cylinders.

Government-backed small-business lending has ground to a halt. Agencies can’t award or make payments on many new contracts. Scheduled workplace-safety inspections are on hold and so are many regulatory reviews.

📆 Earnings

• Levi Strauss

Points of pain are also showing up in the labor market, at least according to some unofficial data. A host of alternative jobs data from Wall Street are pointing in the same direction: The U.S. labor market is losing steam.

These numbers are getting more attention while the federal government shutdown keeps the lights off at the Bureau of Labor Statistics, delaying new data in an unsettled time for the jobs market.

PepsiCo's top finance executive, Jamie Caulfield, is retiring after more than three decades with the beverages and snacks maker, and will be succeeded by Walmart executive Steve Schmitt.

PepsiCo on Thursday said Caulfield, who has been executive vice president and chief financial officer of the Purchase, N.Y., company since December 2023, will remain finance chief until Nov. 10, when he will be succeeded by Schmitt, who is currently the top finance officer for Walmart's giant Walmart U.S. arm.

Schmitt, 52 years old, has been with Walmart since 2016 and has served as executive vice president and chief financial officer of Walmart U.S. since 2021, overseeing the finances of the division that has generated more than two-thirds of the retail giant's nearly $340 billion in sales in the first half of its current fiscal year.

PepsiCo said Schmitt will receive an annual base salary of $900,000 and an annual bonus with a target of 150% of his base pay. He will also receive a $3.5 million sign-on bonus, with $2 million paid immediately and $1.5 million paid after a year on the job.

• PepsiCo Posts Higher Revenue, Profit Falls

• Exclusive: U.S. regulators are investigating Massachusetts Mutual Life Insurance, a major U.S. insurer and asset manager, over accounting practices in its investment operations, people familiar with the matter said.
• Auto-parts supplier First Brands crashed into bankruptcy last month. Now, banks are sifting through their exposure to the company and its chain of customers and suppliers.

📰 Other headlines

• Fed Minutes Reveal Divide Over Outlook for Cuts
• Exclusive: Trump Excludes Generics From Big Pharma Tariff Plan
• Delta Air Lines Expects Travel Rebound to Carry Into Holiday Season
• Microsoft Tries to Catch Up in AI With Healthcare Push, Harvard Deal
• GM Backs Off Controversial EV Tax Credit Move
• IMF Chief Sees Global Growth Slowing ‘Only Slightly’ in Face of Higher Tariffs
• Cash-Strapped U.K. Discovers Missing $4 Billion Thanks to Data Flub
• Next Time You Are Invited to a Meeting, Maybe Don’t Say ‘Maybe’
• He Turned Down Nike. Now, This Sneaker Designer Is Betting On Going Solo.

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Designer Brands, the Columbus, Ohio-based retailer, said Chief Financial Officer Jared Poff plans to resign to pursue a new professional opportunity, effective Oct. 31. The board approved the appointment of Mark Haley as the company's principal financial officer on an interim basis, effective Nov. 1. Haley will also continue to serve as controller and principal accounting officer.

The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.

Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.

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