Pepsi Bottling Cutting 700 Jobs

World's largest PepsiCo bottler cuts jobs and keeping only six out of eight business units in U.S. and Canada.

OMERS, N.Y. (AP) - Pepsi Bottling Group Inc., the world's largest bottler of PepsiCo drinks, said Wednesday it will cut 700 jobs and keep only six out of its eight business units in the U.S. and Canada.
The company, which also manufactures and sells the beverages, said the restructuring is to ''adapt to changes in the marketplace and improve operating efficiencies.''
PBG plans to record a charge of 9 cents to 12 cents per share in the second half of the year, mainly for severance and other layoff-related costs.
The changes are expected to save about $30 million a year before taxes. The job cuts include up to 550 hourly positions worldwide and about 150 management positions. The company has about 70,400 employees.
PBG added it plans to invest in its supply chain organization.
''The consolidation of our retail customers and consumer demand for more variety are the two primary market forces driving this realignment,'' said Eric J. Foss, president and chief executive, in a statement. ''We are confident these moves will help us grow long-term shareholder value.''
The company reaffirmed its 2007 adjusted earnings outlook of $2.02 to $2.07 per share. Analysts polled by Thomson Financial are expecting a profit of $2.07 per share.
Finally, PBG said it is evaluating the returns on its full service vending equipment and may retire some, resulting in more charges in the second half of the year.
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