PepsiCo set to offload 8,700 jobs as it ups US marketing spend by around $600m for 2012
PepsiCo has announced that it will shed 8.700 jobs as it aims to increase its advertising and marketing spend in the US by around $600m.
The company, which owns brands such as Pepsi, Tropicana and Doritos, has said that it will cut up to 3% of its work force as it aims to make cost savings of around £3bn by 2014.
The decision has been made, said the company, as a result of rising costs expected this year for commodities, although the company does not plan to offset those costs through higher prices.
Hugh Johnson, CFO for PepsiCo, commented: "2012 will be a year of transition, one in which we will make the right investments to position PepsiCo properly to achieve long-term high-single-digit core constant currency earnings per share growth.”