Soft drinks giant PepsiCo is said to be cutting of significant amount of its workforce as a part of a restructuring plan. The job cut will be executed in phased manner over coming years. It has been reported that the company is also thinking of closing down some of its production facilities along with the cut down of jobs. Ramon Laguarta, who is the chief executive of the company, seems to be making several attempts to mark his own imprints over the company. The results declared by the company for the year 2018 include a restructuring cost of around $138Mn. For the year 2019, the same cost is said to be somewhere around $800Mn.
The producer of orange juice under the brand Tropicana, Oats meal under the name Quaker, and the Mountain Dew has said in its statement that it is expecting 4 percent rise in the organic revenue. However the expectations of the company do not include divestitures and acquisitions along with the fluctuations in the currency. The rise in the revenue for the year 2018 was around 3.7 percent. The company expects that the core earnings will be dropping down by 3 percent. Shares of the company climbed by 1.3 percent during the trading carried out in the early hours.
Due to the increasing costs of transportation, the company had thought of increasing up the prices of its products under Frito-Lay in the month of October last year. Mr. Laguarta had taken over the chair of CEO in the month of October of the year 2018 as he succeeded Indira Nooyi. Right from the beginning of his tenure, he seems to be focusing upon managing the costs and accelerating the revenue growth from its organic products. He intends to reinvest the funds collected from the cost cuts back in into the business.