Pepsi Bottling announces restructure, effecting 3,000 jobs

The Associated Press reports that Pepsi Bottling Group Inc. has cut its 2008 profit outlook and has announced a restructuring plan that will affect more than 3,000 jobs worldwide. The bottler said it will refine its selling and service organization, lower its general and administrative expenses, make its supply chain more efficient and modify its defined benefit pension plans in the U.S. and Canada. The company said about 750 jobs will be affected, and four facilities in the U.S. will be closed. In Europe, Pepsi Bottling said it will "streamline its organization," which will affect about 200 jobs. In Mexico, it will close three plants and 30 distribution centers and will eliminate 700 routes over time. Those changes will affect about 2,200 jobs. The company said it will likely save between $150 million to $160 million each year once the restructuring is completed. Pepsi Bottling expects to save at least $70 million in 2009. The cost of the program is expected to result in charges between $140 million and $170 million.