PepsiCo's net rises; plans to cut 8,700 jobs

Pepsi bottles line the self of a supermarket in Springfield, Ill., Tuesday, July 11, 2006. PepsiCo Inc., the No. 2 soft-drink maker, said second-quarter profit jumped 14 percent, helped by sales of non-carbonated beverages. (AP Photo/Seth Perlman)
AP

PURCHASE, N.Y. - PepsiCo (PEP) says it will cut 8,700 jobs in a cost-cutting move as it increases investment in advertising and marketing in North America.

The jobs cuts are 3 percent of its work force. The company says it expects to save $1.5 billion by 2014.

The snack and drink maker also says net income for the quarter ended Dec. 31 rose 4 percent to $1.42 billion, or 89 cents per share. That's up from $1.37 billion, or 85 cents per share, last year.

Excluding restructuring and other costs, net income was $1.15 per share Analysts expected $1.13.

Revenue rose 11 percent to $20.16 billion. Analysts expected $19.89 billion.

Soda makers are facing high costs and changing consumer tastes toward healthier drinks. Pepsi's products include Quaker oatmeal, Tropicana juice and Doritos chips.