JOIN USGlobal food and beverages giant PepsiCo will cut 8,700 jobs across 30 countries as part of a programme to save up to $1.5 billion by 2014 to offset high commodity costs and increased spending on advertising and marketing.
The firm plans to increase advertising and marketing support behind its global brands by $500-600 million in 2012, with particular focus on North America.
PepsiCo said it is undertaking a multi-year productivity programme for cost savings under which, it will consolidate manufacturing, warehouse and sales facilities; and implement simplified organisation structures, with wider spans of control and fewer layers of management.
“This includes headcount reductions of about 8,700 employees across 30 countries, about 3 per cent of the company’s global workforce,” PepsiCo said. PepsiCo CFO Hugh Johnston said the company has to take “some tough decisions” to implement its strategic priorities in 2012.