STOCK MARKET WATCH -- Thursday, 9 February 2012

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16. PepsiCo to Cut 8,700 Jobs Even as It Spends $600 Million More on Marketing

http://www.bloomberg.com/news/2012-02-09/pepsico-to-cut-8-700-jobs-even-as-it-spends-600-million-more-on-marketing.html

PepsiCo Inc. (PEP) plans to cut 8,700 jobs and boost marketing spending for its brands by as much as $600 million as Chief Executive Officer Indra Nooyi works to turn around the world’s largest snack-food maker.

The increased spending will have a “particular focus” on North America, the Purchase, New York-based company said today in a statement. The job cuts represent about 3 percent of PepsiCo’s global workforce.

Nooyi is looking to boost U.S. beverage sales and regain market share from Coca-Cola Co. (KO) The company brought investors together in New York today to reveal a multi-year plan to boost earnings and restore confidence after two years of lowered profit targets.

“They struggled on the beverage side both in North America and abroad, and there is a lot of pressure on that company to perform better this year,” Jack Russo, an analyst with Edward Jones & Co. in St. Louis, said in a telephone interview. “They need product innovation, cost savings and more marketing.”