Pepsi to cut 8,700 jobs worldwide PepsiCo, the US drinks and snacks company, said on Thursday it would shed 8,700 jobs worldwide as it looks to cut costs to fund increased investment in its core brands. The cuts represent about 3 per cent of Pepsi's global workforce and are part of an effort to reduce costs by $3bn in the next three years. The announcement came as the company reported strong fourth-quarter earnings and said it would invest $500-$600m to ramp up marketing in its brands, with a special focus on North America. "As we implement our strategic priorities in 2012, we've had to make some tough decisions," said Hugh Johnston, Pepsi's chief financial officer. As a result, 2012 will be a year of transition, one in which we will make the right investments to position PepsiCo properly to achieve long-term ... growth. Pepsi said it would increase the new investment each year as a percentage of the company's revenues. It will also invest an additional $100m in retail routes and displays this year. Thursday's move comes after a challenging year for Pepsi, with investors disappointed in the company's focus on healthy foods in favour of its core brands and some analysts calling for Pepsi to split its drinks and snacks business. Indra Nooyi, Pepsi's chief executive, said that after a six-month strategic review the company decided that it is better off as one. Additionally, the company said that Massimo d'Amore, president of the global beverages group, will be retiring from Pepsi. The former head of PepsiCo Beverages Americas was demoted last September as part of a reshuffling of the marketing unit. Pepsi said its net income rose 3 per cent in the fourth quarter year-on-year to $1.4bn, or 89 cents a share, with revenues up 11 per cent to $20.1bn. Revenues in Europe and Asia rose 31 per cent and 16 per cent, respectively. Revenues in the North America beverage business, which has been the subject of much scrutiny recently, fell 1 per cent from the fourth quarter of 2010 due to continued declines in carbonated soft drinks. Frito-Lay North America revenues were up 6 per cent. Pepsi shares slipped 4.2 per cent to $63.92 in morning trading on Thursday.