PURCHASE, N.Y. —PepsiCo said it plans to cut 8,700 jobs, or about 3 percent of its workforce, as it tries to offset higher costs for ingredients and increased spending on advertising in North America. The maker of everything from soda to Doritos chips said it expects that the restructuring will save the company $1.5 billion by 2014. That’s on top of $1.5 billion in cost cutting it previously announced.
Pepsi announced the layoffs Thursday as it reported better-than-expected fourth-quarter profit but forecast a decline in adjusted 2012 earnings. On the mixed news, its shares fell 2.7 percent.
For the fourth quarter ended Dec. 31, the company its net income rose 4 percent to $1.42 billion. That’s up from $1.37 billion in the quarter last year. The Associated Press
