PEPSICOPepsico ( 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.