PepsiCo, the maker of Pepsi soda and Doritos chips, said it will cut 8,700 jobs worldwide. That represents about 3 percent of its 300,000 person global work workforce.
The announcement also comes just after the company announced better-than-expected fourth-quarter earnings. The Financial Times reports that net income for the company rose 3 percent to $1.4 billion and revenues were up 11 percent to $20.1 billion.
The job cuts, reports the AP, were prompted to try and make up for the higher cost of ingredients and are expected to save the company $1.5 billion in the next three years.
"At the same time it's making cuts, PepsiCo also is planning to invest in its business.
"PepsiCo plans to increase advertising and marketing behind its brands by $500 million to $600 million in 2012, with a particular focus on North America.
"It also plans to invest $100 million on in store racks, displays and coolers. Additionally, it plans to increase dividends and share buybacks in 2012 to return cash to shareholders."