PepsiCo announces 8,700 job cuts - KWWL - Eastern Iowa Breaking News, Weather, Closings

PepsiCo announces 8,700 job cuts

PepsiCo announced plans on Thursday to cut 8,700 jobs as part of a new cost-cutting plan.

The company owns Pepsi, Quaker Oats, Frito-Lay, Gatorade, and Tropicana including a bottling plant and a cereal company in Cedar Rapids. They also employ people across Iowa to market merchandise in local stores. 

The job cuts amount to about 3% of the company's workforce. They will be spread across 30 countries. The workforce reduction is expected to save PepsiCo $500 million in the first year, and $1.5 billion through 2014.

The news comes as the company announced a 4% increase in shareholder dividends starting in June. The company is also increasing advertising and marketing spending by as much as $600 million, mainly in North America.

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