US snacks giant Frito-Lay, part of PepsiCo, has announced that it is to cut between 200 and 250 jobs as part of a move to streamline its organisation.
Frito-Lay, which employs around 46,000 people in the US, said the majority of jobs affected are positions at its Plano-area headquarters and HQ-related roles across the country.
“Streamlining our business accelerates Frito-Lay’s drive for greater simplicity, flexibility and speed – and it also enables us to step up our investments in consumer and customer focused innovation, our selling systems and supply chain infrastructure,” said Irene Rosenfeld, Frito-Lay chairman and CEO.
Frito-Lay’s parent company PepsiCo announced that it intends to reinvest 3 cents per share of its 53rd week profits in restructuring to reduce costs in some of its operations.
The company expects to record a pre-tax charge of $65m to $85m related to the restructuring. As a result of the announcement, the company stated it now expects 2005 reported earnings per share of $2.38 to $2.39, and confirmed it is on track to deliver core earnings per share of $2.64 to $2.65.
“We continue to see very good top line momentum, giving us confidence in our outlook for the fourth quarter. At the same time, we are tightening our belts wherever we can to be in position to deal more effectively with continued cost pressures next year,” said chairman and CEO Steve Reinemund.
“The strong momentum of our business, together with these actions and a strong innovation calendar for 2006, gives us confidence that we will achieve our goal of low double-digit earnings per share growth in 2006,” he added.
