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CHICAGO - PepsiCo today announced it would cut about 750 jobs as it reorganizes its North American soft drink business and international operations and closes a Frito-Lay plant in the U.S. in an effort to cut costs.
The move, which will create a major management center in Chicago, is part of the company's ongoing strategic realignment of its beverages and foods divisions.
The company said it is aiming to establish a more integrated liquid refreshment beverage (LRB) organization for its multiple beverage businesses to staff and support functions to span all lines of the PBF business. Approximately 275 jobs will be eliminated across all PBF locations.
"We are taking bold steps to make PBF the largest beverage company in North America and to further strengthen and integrate our great breakfast portfolio," said PBF chairman and c.e.o. Gary Rodkin.
PBF will be organized around five business groups:
-- Pepsi-Cola North America (PCNA) - PBF's largest business unit will remain based in Purchase, N.Y., and will continue to be led by PCNA president Dawn Hudson.
-- Juices - This newly formed business unit will combine PBF's Tropicana and Dole juices and juice-drinks brands -- including both refrigerated and shelf-stable products -- into one integrated management team that will be based in Chicago. Greg Shearson has been named as the division's president.
-- Gatorade - The sports drinks and re-hydration division will continue to be based in Chicago and led by president Chuck Maniscalco.
-- Quaker Foods - The highly profitable portfolio of strong brands, primarily for the breakfast occasion, will continue to be based in Chicago and led by Quaker Foods president Polly Kawalek.
-- Canada - The group will continue to be based in Mississauga.
A unified PBF will produce the single-largest juice and juice-drink organization in the world, according to Rodkin. "By integrating more of our forces into one location, we can build innovation, go-to-market strength and have many more opportunities for cross-fertilization. At the same time, we'll have a tighter, more concentrated organization, with fewer management layers and easier, more efficient and effective ways to work together and get things done," he said.