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Pepsico will cut 8,700 jobs in cost-cutting move; 4th-quarter net income rises
PURCHASE, N.Y. (AP) ' PepsiCo says it will cut 8,700 jobs in a cost-cutting move as it increases investment in advertising and marketing in North America.
The jobs cuts are 3 percent of its work force. The company says it expects to save $1.5 billion by 2014.
The snack and drink also says net income for the quarter ended Dec. 31 rose 4 percent to $1.42 billion, or 89 cents per share. That's up from $1.37 billion, or 85 cents per share, last year.
Excluding restructuring and other costs, net income was $1.15 per share Analysts expected $1.13.
Revenue rose 11 percent to $20.16 billion. Analysts expected $19.89 billion.
Soda makers are facing high costs and changing consumer tastes toward healthier drinks. Pepsi's products include Quaker oatmeal, Tropicana juice and Doritos chips.