The nation's second-largest drink maker said it expects to generate a pretax savings of more than $1.2 billion over the next three years, with $350 million to $400 million to be saved in 2009. A chunk of the job cuts will be related to the closing of six plants. The majority of the savings will be invested in brand building, long-term research and development and growth initiatives in key markets, the company said.
"While we can't control the macro economic situation, we can enhance PepsiCo's operating agility to respond to the changing environment," said Indra Nooyi, PepsiCo's chairman and chief executive.