PepsiCo Slashing Thousands of Jobs

PepsiCo Inc., the largest snack-food manufacturer in the world, announced recently that it plans to cut 8,700 jobs around the world and increase marketing spending for its brands, Bloomberg reports.

According to the news source, the job cuts would account for 3 percent of the New York-based company's global workforce, saving approximately $1.5 billion by 2014.

Chief executive officer Indra Nooyi said that the company is seeking to jumpstart beverage sales and take back some of the market share from rival Coca-Cola Company, noted Bloomberg. Nooyi added the company could boost marketing for its brands by $600 million, with benefits of this strategy being seen during the second half of 2012.

"Running a large company is like doing a car race," the 56-year-old chief executive officer told the news source in an interview. "Occasionally, you have to stop and refuel yourself in the pit stop, and that is what we’re doing in 2012."

PepsiCo., which manufactures snacks including Doritos chips in addition to its Pepsi soft drink products, announced the layoffs on the same day it reported better-than-anticipated fourth-quarter profit, according to The Associated Press.