PepsiCo. Inc. expects to cut 8,700 jobs as part of a plan to save an extra $1.5 billion over the next three years; meanwhile it is pouring money into its brands! They reported an unexpected increase in their fourth-quarter profit but they forecast a 5 percent decline in the 2012 fiscal year earnings as it increases advertising and marketing by $500 million to $600 million. This million dollar investment will be focused on 12 brands under PepsiCo. Inc. and the focus is to try to improve their performance in North America where is trails behind arch-rival Coca-Cola Co.
PepsiCo. has stated that the job cuts will occur in 30 countries, and the $1.5 billion extra in savings is in addition to the $1.5 billion they had already planned on saving over that time frame regardless. PepsiCo. has also stated that the president of their Global Beverages Group will be retiring at the end of February.
In your opinion, is cutting this many jobs really necessary to receive this great of an increase in revenues yearly? And will this harsh decision actually propel their products to surpass Coca-Cola products?
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