Summary Box: PepsiCo to cut 8,700 jobs

AP News
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Posted: Feb 09, 2012 11:07 AM
Summary Box: PepsiCo to cut 8,700 jobs

THE NEWS: Pepsico Inc. plans to cut 8,700 jobs, about 3 percent of its 300,000 global work force, in a restructuring. The company also reported fourth-quarter earnings rose 4 percent. Adjusted results beat expectations.

THE CONTEXT: Pepsico and other soda makers are facing higher commodity costs and changing consumer tastes. Pepsi's soda division has been losing ground to Coca-Cola, but its snack business, which includes Doritos and Quaker Oats, has been doing better.

WHAT'S NEXT: The company said it expects adjusted earnings to fall in 2012, which it called a transition period, before growth begins again in 2013.