Pepsi Bottling Co. tightens its operations belt
The Somers, N.Y.-based Pepsi Bottling Group said last week it is streamlining operations in the United States and Canada by consolidation from eight to six business units in an effort to 'adapt to changes in the marketplace and improve operating efficiencies,' according to a statement by the firm.
The consolidation includes the closure of the firm's Pleasanton, Calif., business offices. It will also require cutting 150 management positions nationwide and 550 hourly positions worldwide.
The Pleasanton office, which will be merged with the firm's Southern California division, has a staff of 50 working in human resources, finance, regional sales, manufacturing and logistics departments. It has served as the administrative and regional sales office for the company’s Pacific Northwest business unit.
PBG will take a pre-tax charge of $30 million to $40 million in the second half of 2007 due to the consolidation. The firm's after-tax cash costs arising from the move are expected to be about $20 million to $25 million. PBG expects the consolidation to result in annualized, pre-tax savings of about $30 million.
The firm is the world’s largest manufacturer, seller and distributor of Pepsi-Cola beverages, with more than 70,000 employees and sales of nearly $13 billion. PBG has operations in the United States, Canada, Greece, Mexico, Russia, Spain, and Turkey.