PepsiCo to cut 3,300 jobs on lower earnings

[October 14, 2008]  PURCHASE, N.Y. (AP) -- PepsiCo Inc. says it plans to eliminate 3,300 positions globally, as it reports a 9.5 percent drop in third-quarter profit.

The company said Tuesday it expects to generate a pretax savings of more than $1.2 billion over the next three years with $350 million to $400 million in 2009, designed to reinvigorate lagging sales of its soft drinks business in the U.S. Pepsi expects to report 2008 earnings per share of $3.67 to $3.68, compared with prior guidance of $3.72.

The company reported a net income of $1.58 billion, or 99 cents a share, in the quarter, compared with $1.74 billion, or $1.06 per share, a year earlier, on sales of $11.2 billion in the most recent period, compared with $10.17 billion a year ago.

[Associated Press]

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