Pepsico has announced that it is implementing a three-year productivity program that is expected to generate over $500 million in incremental cost savings in 2012, further incremental reductions in the cost base of about $500 million in 2013, and an additional $500 million in 2014.
February 14, 2012
Pepsico has announced that it is implementing a three-year productivity program that is expected to generate over $500 million in incremental cost savings in 2012, further incremental reductions in the cost base of about $500 million in 2013, and an additional $500 million in 2014. This effort includes headcount reductions of about 8,700 employees across 30 countries, about 3% of the company’s global workforce. The productivity programs will enhance the company's cost-competitiveness as well as provide a source of funding for future brand-building and innovation initiatives.
“As we implement our strategic priorities in 2012, we’ve had to make some tough decisions,” said Chief Financial Officer Hugh Johnston. “As a result, 2012 will be a year of transition, one in which we will make the right investments to position PepsiCo properly to achieve long-term high-single-digit core constant currency EPS growth.”
Press release