Home > economics, shorter work time > Pepsi to cut 3300 jobs, idle six plants…

Pepsi to cut 3300 jobs, idle six plants…

Pepsi will cut 3300 jobs and shut as many a six plants, as part of a plan to reduce costs by $1.2 Billion over three years, according to the Guardian:

A nationwide housing slump, credit crunch and job losses have meant consumers were eating less at restaurants, cutting back on trips to gas stations or convenience stores and buying fewer items such as bottled water.

The changing habits have taken a toll on beverage sales, which is viewed as a discretionary purchase by many. “The beverage business was clearly the soft spot. The whole category has continued to be soft this year,” PepsiCo Chief Financial Officer Richard Goodman said in an interview. “The domestic beverage business is at a historically low level.

I don’t think there’s been another year in which the industry as a whole has actually seen a volume decline, which is what we’ve seen,” he added. Pepsi said that some 40 percent of the jobs it will cut will come from closing up to six plants and other actions that will be announced by the end of the year.

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