Pepsi Bottling to combine units, cut some 700 jobs

[OhioChick]

Source: Reuters

NEW YORK (Reuters) - Pepsi Bottling Group Inc. said on Wednesday it would combine some field operations in the United States and Canada and realign its work force to improve productivity, cutting up to 700 jobs.

The largest bottler of PepsiCo Inc. drinks said these moves would lead it to record a pretax charge of $30 million to $40 million, or 9 cents to 12 cents per share, in the second half of the year, mostly for severance and other employee-related costs.

The company plans to spend $20 million to $25 million on the restructuring, and expects to reap about $30 million in annualized, pretax savings.

Morgan Stanley analyst William Pecoriello said the move would be a positive for earnings and valuation, since he assumed the savings would either aid earnings directly or be reinvested in the business.

Pepsi Bottling said there will now be six business units in the United States and Canada, instead of eight. The company will eliminate about 150 management positions and up to 550 hourly positions.



Read more: http://in.reuters.com/article/businessNews/idINIndia-28886020070808

[Bitwit1234]

1. You can't tell me people are cutting back on soft drink

he big shots just want more and more and more money.

[shanti]

5. i think the word is finally getting out

that soft drinks are BAAAAAD for you. people just aren't buying as much of them, it seems.

[BrotherBuzz]

6. I suspect there has been an increase in soft drink consumption

Pepsi is getting stung (I think Coca Cola, too) because generic sodas have made a huge impact in the market. People are accepting the lower priced generic product because they find little difference in the taste despite all the expensive adds proclaiming otherwise.

[simple]

8. More money

Fact: I work harder and longer hours than my neighbor.
Fact: I pay more taxes as a direct result of this.
opinion: that is counterproductive.

He calls me a big shot
His other neighbor calls him a big shot

[Megahurtz]

2. More Jobless People.

Better hurry and go get that Computer Tech Degree or something. :sarcasm:

[kestrel91316]

3. Their next move will be to sub the work out to some Chinese plant.

Probably one with a track record of prior poisonings.......

[u2spirit]

4. It's already happening

I got let go at PBG last month without a severance package after 10 years. I have found out they just rolled my job into another person's job now she ha too much to do. PBG sucks. I gave 10 good years to them and they threw me out like Monday's garbage.

[SpiralHawk]

7. "they threw me out like Monday's garbage..."

That's the republicon Homelander crony mindset for sure.

Why so many regular working men and women have bought into the republicon propaganda media machine, I will never know. The republicons treat all the Little People like Monday's garbage, so the "Have Mores" can Have More.