NEW YORK — PepsiCo Inc. is cutting jobs and closing factories to give it some “breathing room” to navigate the volatility that has permeated all corners of the global economy.
The maker of Pepsi-Cola, Doritos and Sun Chips said Tuesday it plans to eliminate 3,300 jobs and shutter six plants in an effort to save $1.2 billion over three years. It plans to use the savings primarily to revive lagging U.S. soft-drink sales.
“This will enable our competitiveness and give us breathing room to respond,” chief executive Indra Nooyi said on a conference call. “It is no news to you the economy is turbulent and there are uncertainties and volatility in every part of the environment.”
The announcement came as the global snacks and drinks company reported a 9.5 percent drop in third-quarter profit, missing Wall Street expectations. PepsiCo also issued a downbeat profit outlook for the fourth quarter and full year.
The job cuts amount to roughly 1.8 percent of PepsiCo’s global workforce of about 185,000 employees, and will affect managerial and factory jobs in and out of the U.S.
