Pepsico (PEP) said it's laying off 8,700 workers around the world as it undergoes a "transitional year." While the company ratchets back on costs in employees, it's also pushing money into advertising its soft drinks in North America.
The company, like other food and beverage makers, is facing higher material costs. Even its competitor, Coca-Cola, is undergoing cost cutting.
Pepsico's CEO, Indra Nooyi, said in a media briefing in early February that the layoffs would amount to 3% of its total workforce in more than 30 countries. The company is pouring $500 million to $600 million in ads and marketing this year along. It also plans to invest $100 million in store displays, coolers and racks, and will increase dividends and share buybacks.The restructuring is expected to save the company $1.5 billion by 2014, adding to the $1.5 billion in saving costs already announced.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV