PepsiCo plans to cut 8,700 jobs

By msnbc.com news services

Snacks and beverage maker PepsiCo said Thursday it plans to cut 8,700 jobs in a restructuring as it seeks to offset high commodity costs and increases investment in advertising and marketing in North America.

The job cuts represent 3 percent of the company’s work force and are part of a multi-year productivity program that is expected to generate $1.5 billion in cost savings by 2014, the company said.

PepsiCo also said it plans to increase its advertising and marketing investments by $500-$600 million in 2012, with particular focus on North America. PepsiCo’s Chairman and CEO Indra Nooyi appeared on CNBC to discuss the investments, the company’s outlook and the planned job cuts.

“Layoffs are very very difficult,” she said, adding that even though the company is laying off 8,700 people, overall those cuts will be offset by the fact that PepsiCo hires between 15,000 and 20,000 workers globally.

Earlier this week, rival Coca-Cola reported a better-than-expected quarterly gain, offering evidence that consumers remain resilient despite the global economic slowdown. 

Read the press release. 

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