PepsiCo will not demand that CEO Indra Nooyi splits the business into separate units. In an interview with the Wall Street Journal, independent director James Schiro said: “The board supports Indra and the management team, and its ability to execute its strategy and vision to create shareholder value”.
Instead of forming two separate business units, PepsiCo is expected to invest more money on promoting its core drinks products, as well as lowering costs by job cuts; its carbonated drinks have been outperformed by rival Coca-Cola in recent times. Some industry sources were quoted in the article as saying that PepsiCo could announce cost cuts of $300 million to $500 million, and would consolidating several offices of its US beverage business.
They added that the group could lay off up to 4,000 employees globally. (Jan 19)
© 2012 ESM:European Supermarket Magazine
