Pepsi to cut 3,300 jobs as profits slide

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PepsiCo Inc, the second largest Cola maker and the largest snack maker in the world, will axe several jobs as it's soft drink sales dropped in the U S and Canada.The company said that consumers in North America, which account for one fourth of it's total revenue, are spending less on colas due to the credit crisis.

PepsiCo chief executive Indra Nooyi said in a statement

We were adversely impacted by continued weakness in the US liquid refreshment beverage category, which resulted in disappointing performance in our domestic beverage business.We are taking important steps to revitalize our beverage portfolio.

Besides the job cuts, Pepsi will shut down six of it's plants. The above job cuts represent 1.8 percent of it's total work force. It plans to save $ 1.2 billion over a period of three years by these cost cutting measures.