Pepsi to cut 8,700 jobs worldwide

BY AGENCIES

PEPSICO, the US drinks and snacks company, said on Thursday it would shed 8,700 jobs worldwide as it looks to cut costs to fund increased investment in its core brands.

The cuts represent about 3 per cent of Pepsi’s global workforce and are part of an effort to reduce costs by $3bn in the next three years.

The announcement came as the company reported strong fourth-quarter earnings and said it would invest $500-$600m to ramp up marketing in its brands, with a special focus on North America.

“As we implement our strategic priorities in 2012, we’ve had to make some tough decisions,” said Hugh Johnston, Pepsi’s chief financial officer.

“As a result, 2012 will be a year of transition, one in which we will make the right investments to position PepsiCo properly to achieve long-term ... growth.”