PepsiCo announces 8,700 job cuts as net income rises

[OhioChick]

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

[tech_smythe]

1. MAKE LESS ADS YOU ASSHOLES!!!!!

everyone knows who you are!
stop using HFCS!
Use sugar, it tastes better anyway!

"profits are up? why lets fire some people!"

i hate corporate america, i really do, with ever fiber in my being!

[LittleGirl]

8. +1

nt

[leftyohiolib]

16. pepsi throwback is pepsi without hfcs

[tech_smythe]

18. i know, i drink it, just wish they'd do more

in Europe NOTHING has hfcs in it.
its rather nice.

[HughBeaumont]

2. OK, so is there like . . . a Plan C??

You know, one where workers AREN'T paying for management greed, management mistakes or unbridled corporatism with their livelihoods?

Please logically explain to me HOW this is going to help capitalism. HOW???

[TBF]

11. This IS capitalism, HughBeaumont, this is it.

This is capitalism in all it's glory, with the folks at the very top getting their rewards.

We were able to regulate it between 30-50 years depending upon calculations (I'd say WWII-1980, ymmv ...), in those years we did it and had some semblance of a middle class lifestyle for many, and now we are back to the 1920s.

We can try to regulate it again, or we can transition to socialism and try to save this planet.

[Roland99]

3. $172,413 per cut job

[arcane1]

4. "increased spending on advertising in North America."???

Is there anyone in North America who doesn't know who freakin' PEPSI is??????

[russspeakeasy]

5. HFCS is reason enough not to drink their product.

[sellitman]

6. The problem is Coke is just as reprehensible.

There is always water from the faucet though.

[jayfish]

7. At least PepsiCo releases non-HFCS versions of Pepsi and Mountain Dew...

with "Throwback" branding. They're damn good too. ...and I'm a Coke drinker.

[Incitatus]

28. Some places do carry Coke made with sugar.

It used to be just Hispanic markets, but I have recently seen them at Publix, Home Depot and a local gas station.

[jayfish]

31. Yeah, but it's in smallish bottles and priced at a premium.

Coca Cola treats it more as a novelty item.

[leftyohiolib]

17. pepsi throwback doesnt have hfcs in it

[Auggie]

9. When somebody drinks a Coke (or Pepsi) watch what happens…

In The First 10 minutes: 10 teaspoons of sugar hit your system. (100% of your recommended daily intake.) You don’t immediately vomit from the overwhelming sweetness because phosphoric acid cuts the flavor allowing you to keep it down.

20 minutes: Your blood sugar spikes, causing an insulin burst. Your liver responds to this by turning any sugar it can get its hands on into fat. (There’s plenty of that at this particular moment)

40 minutes: Caffeine absorption is complete. Your pupils dilate, your blood pressure rises, as a response your livers dumps more sugar into your bloodstream. The adenosine receptors in your brain are now blocked preventing drowsiness.

45 minutes: Your body ups your dopamine production stimulating the pleasure centers of your brain. This is physically the same way heroin works, by the way.

60 minutes: The phosphoric acid binds calcium, magnesium and zinc in your lower intestine, providing a further boost in metabolism. This is compounded by high doses of sugar and artificial sweeteners also increasing the urinary excretion of calcium.

60 Minutes: The caffeine’s diuretic properties come into play. (It makes you have to pee.) It is now assured that you’ll evacuate the bonded calcium, magnesium and zinc that was headed to your bones as well as sodium, electrolyte and water.

60 minutes: As the rave inside of you dies down you’ll start to have a sugar crash. You may become irritable and/or sluggish. You’ve also now, literally, pissed away all the water that was in the Coke. But not before infusing it with valuable nutrients your body could have used for things like even having the ability to hydrate your system or build strong bones and teeth.

LINK: http://www.nutritionresearchcenter.org/healthnews/what-happens-to-your-body-if-you-drink-a-coke-right-now/

[workinclasszero]

10. Wow, eye opening facts Auggie! Thanks... /nt

[TBF]

12. I read a similar article on Yahoo earlier this month and it scared the crap out of me -

I haven't had a soda since. I have been drinking coffee, iced tea, and water. Not sure if the caffeine will do my body much good of course, but no more soda.

Maybe other folks read the article too ...

[monmouth]

13. I've been drinking green tea (Publix sells it in 1/2 and quart size). Love it..n/t

[TBF]

14. I'll have to try that -

Our Kroger is pretty similar to your Publix (I only get to Publix when we visit Tampa!), so I'll give it a try. Green tea has the health benefits too

[SammyWinstonJack]

23. Green tea from costco. Usually hot with honey and french vanilla creamer.

[monmouth]

24. Will definitely try that. Thanks...n/t

[8 track mind]

15. interesting.

Does this mean they will be selling their 2 Citation corperate jets located in Addison, Tx. The two that have stripes in the colors of the Frito bag? As soon as I can find he pictures of them I will post them. I've stood inside one of them. Rosewood and leather interior, wi-fi, beer in the fridge. No shit.

[appleannie1]

19. We all know what Pepsi and Doritos are. We don't need to see ads. So stop wasting money on them.

[coffeenap]

20. Aluminum prices too high?

Let's reinstitute returnable glass bottles. It would benefit the planet as well as the health of pop drinkers and general public. It could be practiced on a regional basis, keeping transportation costs down. It would make people feel better about doing a bit to help out. It would make us all think before tossing out yet another quickly emptied container. Thoughts? Oh yeah, might save Pepsico a precious penny or two.

[valerief]

21. Remind me again why people need to drink soda pop at all.

[nanabugg]

22. The problem with capitalism is that there is absolutely no restraint on profits. Until

the masses understand and "occupy profits" only the wealthy will survive. It's no longer about making a decent return on investment, its all about gouging as much profit as you can while employing as few people as you can.

[salin]

25. So more money in the 'job creators hands' leads to ... fewer jobs.

This is a perfect counter to the GOP attempts at protecting ridiculously low tax rates for highest earners and corporations. Those folks will just horde the money - not create jobs - and in this case - in order to horde more money - cut more jobs.

[Hotler]

29. Well said Salin. n/t

[liberal N proud]

26. as net income rises. WTF

happened to reinvesting your fucking profits?

Greed will consume these fuckers one day. Greed will bring the 1% assholes down because they will have to eat each other to keep up their habits.

[glowing]

27. So, they cut employees.. Who do they think will buy their products then?

There is no reason to cut all those people out of a job... Spend less on ads, cut out some of the perks for the CEO's and the board members.

They will tarnish their brand more, laying people off when there's no real reason to.. And if aluminum is increasing in price, find an alternative that is cheaper. They already increased the cost of their product; they are just being greedy in laying people off.

[Tiggeroshii]

30. It mentions later that this is throughout 30 countries...