Pepsi Bottling to Cut 3,150 Jobs in Restructuring
Pepsi Bottling Group Inc., the world's second-largest soft-drink distributor, lowered its 2008 earnings forecast and said it will eliminate 4.6 percent of its workforce in North America, Europe and Mexico, Bloomberg reported. Pepsi Bottling, which is 33 percent-owned by PepsiCo Inc., will cut 3,150 jobs, mostly in Mexico. Earnings per share will be $2.20 to $2.26 this year, down from the $2.32 to $2.38 Pepsi Bottling forecast in June, the Somers, New York-based company said today in a statement. The shares fell in New York trading. After taxes, the bottler will record costs of 27 cents to 32 cents a share in the fourth quarter because of the cuts. The company will also write off $412 million, or $1.25 a share after taxes, after its Mexican water business performed below the company's expectations. Pepsi Bottling will cut 2,200 jobs in Mexico and close three bottling plants and 30 distribution centers. The company will eliminate 750 jobs in the U.S. and Canada and shut down four facilities in the U.S. A further 200 jobs will be cut in Europe. Read more.