PepsiCo Canada to cut jobs
After PepsiCo announced it would be cutting more than 8,000 jobs globally, PepsiCo Canada announces that 100 of those jobs are being cut here
Toronto – Following on the heels of PepsiCo’s announced global restructuring, PepsiCo Canada is cutting 100 jobs in Canada.
Last week, PepsiCo announced it would be cutting 8,700 jobs, or about three per cent of its workforce, in 30 countries.
One hundred of those jobs will be cut in Canada, though PepsiCo Canada has not specified where and which jobs, reports the WinnipegFreePress.com.
The soft drink maker employs about 10,000 people in Canada, divided among PepsiCo Canada Beverages, Frito Lay Canada and Quaker.
PepsiCo says it expects the restructuring to save the company US$1.5 billion by 2014.
Like most snack and soda makers, PepsiCo is facing higher costs for materials it uses to make, package and transport its products, including aluminum.
PepsiCo said it had to make some difficult decisions because it expects 2012 will be the second year in a row that it will encounter higher-than-average costs for commodities, reports CBC.ca.
PepsiCo says it also plans to make investments and implement strategies that will help the company and its brands grow.
In a release, the company says it will increase investments in its iconic brands and in bringing innovation to market.
PepsiCo says it plans to increase its advertising and marketing spending by $500-$600 million in 2012, the majority in North America. Going forward, it expects to maintain or increase that rate of support as a percentage of revenues.
To drive efficiencies, it will reduce the number of agency partners and also take steps to leverage the global scale of its top brand platforms. “The brand investments,” says the company, “are expected to drive topline growth and enable greater price realization.”