PepsiCo to cut 3,300 jobs shortly

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PepsiCo
New York, Oct 15: PepsiCo reported a quarterly profit on Tuesday, Oct 14 that missed Wall Street forecasts and cut its full-year outlook. The soft drink company has been hurt by an economic slowdown. PepsiCo also said it would cut 3,300 jobs, or 1.8 percent of its work force, as part of a plan to save more than $1.2 billion over three years.

The company's shares fell more than 4 percent in premarket trading. PepsiCo, the maker of Pepsi-Cola drinks, Frito-Lay snacks and Quaker foods, did not give a forecast for 2009, which also weighed on its shares, said a Morgan Stanley analyst, William Pecoriello.

Pepsi said that 40 percent of the jobs it would cut would come from closing as many as six plants and other actions to be announced by the end of the year. Most of the job cuts will occur in the fourth quarter. Pepsi expects to incur a related charge of $550 million to $600 million.

Net income fell to $1.58 billion, or 99 cents per share, in the third quarter, which ended Sept. 6, from $1.74 billion, or $1.06 per share, a year earlier.

 

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