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Showing Original Post only (View all)PepsiCo announces 8,700 job cuts as net income rises [View all]
2h 44m ago
PURCHASE, N.Y. (AP) PepsiCo (PEP) said it plans to cut 8,700 jobs, or about 3% of its workforce, as it tries to offset higher costs for ingredients and increased spending on advertising in North America.
The maker of Pepsi soda and Doritos chips said it expects the restructuring will save the company $1.5 billion by 2014. That's on top of $1.5 billion in cost cutting it previously announced.
Pepsi announced the layoffs on Thursday as it reported better-than-expected fourth-quarter profit, but forecast a decline in adjusted 2012 earnings. On the mixed news, the company's shares fell 2.7%.
Like most snack and soda makers, Pepsi is facing higher costs for materials it uses to make, package and transport its products, including aluminum. Many companies raised prices last year to offset the higher costs. But consumers are still cautious about spending in the uncertain economy, so some companies are moving on to Plan B: cost cutting.
http://www.usatoday.com/money/companies/earnings/story/2012-02-09/pepsico/53020556/1