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OhioChick

(23,218 posts)
Thu Feb 9, 2012, 03:34 PM Feb 2012

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

31 replies = new reply since forum marked as read
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MAKE LESS ADS YOU ASSHOLES!!!!! tech_smythe Feb 2012 #1
+1 LittleGirl Feb 2012 #8
pepsi throwback is pepsi without hfcs leftyohiolib Feb 2012 #16
i know, i drink it, just wish they'd do more tech_smythe Feb 2012 #18
OK, so is there like . . . a Plan C?? HughBeaumont Feb 2012 #2
This IS capitalism, HughBeaumont, this is it. TBF Feb 2012 #11
$172,413 per cut job Roland99 Feb 2012 #3
"increased spending on advertising in North America."??? arcane1 Feb 2012 #4
HFCS is reason enough not to drink their product. russspeakeasy Feb 2012 #5
The problem is Coke is just as reprehensible. sellitman Feb 2012 #6
At least PepsiCo releases non-HFCS versions of Pepsi and Mountain Dew... jayfish Feb 2012 #7
Some places do carry Coke made with sugar. Incitatus Feb 2012 #28
Yeah, but it's in smallish bottles and priced at a premium. jayfish Feb 2012 #31
pepsi throwback doesnt have hfcs in it leftyohiolib Feb 2012 #17
When somebody drinks a Coke (or Pepsi) watch what happens… Auggie Feb 2012 #9
Wow, eye opening facts Auggie! Thanks... /nt workinclasszero Feb 2012 #10
I read a similar article on Yahoo earlier this month and it scared the crap out of me - TBF Feb 2012 #12
I've been drinking green tea (Publix sells it in 1/2 and quart size). Love it..n/t monmouth Feb 2012 #13
I'll have to try that - TBF Feb 2012 #14
Green tea from costco. Usually hot with honey and french vanilla creamer. SammyWinstonJack Feb 2012 #23
Will definitely try that. Thanks...n/t monmouth Feb 2012 #24
interesting. 8 track mind Feb 2012 #15
We all know what Pepsi and Doritos are. We don't need to see ads. So stop wasting money on them. appleannie1 Feb 2012 #19
Aluminum prices too high? coffeenap Feb 2012 #20
Remind me again why people need to drink soda pop at all. valerief Feb 2012 #21
The problem with capitalism is that there is absolutely no restraint on profits. Until nanabugg Feb 2012 #22
So more money in the 'job creators hands' leads to ... fewer jobs. salin Feb 2012 #25
Well said Salin. n/t Hotler Feb 2012 #29
as net income rises. WTF liberal N proud Feb 2012 #26
So, they cut employees.. Who do they think will buy their products then? glowing Feb 2012 #27
It mentions later that this is throughout 30 countries... Tiggeroshii Feb 2012 #30
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