Pepsico has announced an operational restructure which includes cutting 750 jobs. The company will also combine its North American juice businesses into one unit.
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The job cuts will be concentrated in the US, with 330 jobs going at Pepsico’s Frito-Lay plant in Louisville, Kentucky, which is due to close early next year. The cost of the changes is expected to be 6 cents per share in the fourth quarter, but will be offset by a favourable tax settlement.
Pepsico said it plans to reorganise Pepsico Beverages North America into three primary units: Pepsi-Cola, Gatorade and juices. Included in the juice operation will be the company’s Tropican and Dole brands, with many Tropicana jobs moving from Bradenton, Florida to Chicago, where Gatorade is based.
As part of the restructuring, the president of Tropicana North America, Jim Dwyer, will be replaced by Greg Shearson. Dwyer is leaving for personal and professional reasons, according to Pepsico.
Other aspects of the restructure include the adoption of a new compensation plan to strengthen the link between pay and performance, and the counting of stock options as expenses.
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By GlobalDataThe company forecasts earnings per share next year to grow between 12% and 14%, in the range of $2.24 to $2.28. Defying some predictions, no dividend increase was announced.
