Business Pepsico restructuring to cut 8,700 jobs globally and increase advertising

By Mae Anderson AP Business Writer NEW YORK (AP) -- PepsiCo is trying to put some fizz back into its business. The food and drinks maker announced a restructuring on Thursday that includes cutting 8,700 jobs globally and plowing money into advertising drinks like Pepsi and Mountain Dew in North America. Pepsi announced its cost-cutting plan Thursday as it reported better-than-expected fourth-quarter profit, but also forecast a decline in adjusted 2012 earnings. On the mixed news, the company's shares fell nearly 4 percent. Like many companies of all stripes, Pepsi is facing higher costs for materials it uses to make, package and transport its products, including sugar, corn and aluminum. Pepsi and many other food and beverage makers raised prices last year to offset the higher costs. But consumers are still cautious about spending in the uncertain economy, so some companies are moving on to Plan B: cost cutting. Nooyi said although the company is cutting about 3 percent of its 300,000 worldwide work force, the reduction is spread out over 30 countries. She declined to say how many job cuts would be made in the U.S., but said it was less than 3 percent of the total U.S. work force. At the same time it's making cuts, PepsiCo also is planning to invest in its business. PepsiCo plans to increase advertising and marketing behind its brands by $500 million to $600 million in 2012, with a particular focus on North America. It also plans to invest $100 million on in store racks, displays and coolers. Additionally, it plans to increase dividends and share buybacks in 2012 to return cash to shareholders. Published: Fri, Feb 10, 2012