Pepsi is laying off 3,300 workers, almost two per cent of its work force worldwide.
That as the soft drinks and snacks maker reported a worse than expected quarterly profit.
It has also cut its financial outlook for 2008 blaming reduced demand due to the economic slowdown.
The company’s shares fell as investors reacted to the fact that it did not give a forecast for earning and profit for 2009.
Pepsi’s Chief Financial Officer Richard Goodman said sales of bottled water have suffered as many cash-strapped consumers turn to the tap to economise.