Saying that 2012 will be a transition year, Pepsico (NYSE: PEP) chairman and CEO Indra Nooyi revealed today that the company will reduce its global workforce by about 8,700 people (3% of the company’s global total) between now and 2014, and will spend an additional $500-$600 million on marketing and advertising, mostly in North America, in 2012. The steps follow a review by the company’s management of Pepsico’s portfolio, brands, costs, organization and capital structure.
In soft drinks, The Coca-Cola Co. (NYSE: KO) has fared better than Pepsico lately, both for growth and profits. Coca-Cola Enterprises Inc. (NYSE: CCE), Coke’s bottling company, posted year-over-year earnings growth of 16% this morning.
Pepsico will raise its annual dividend by 4%, to $2.15 effective in the June quarter, and will increase its share buybacks by $3 billion in 2012, which the company said it will finance through increased cash flow and more debt. The company also expects 2012 adjusted profit to fall about -5%.
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