Frito-Lay Streamlines Organization to Re-Invest in Future Opportunities

November 9, 2005

PLANO, Texas – As part of a PepsiCo restructuring announced earlier today, Frito-Lay announced today that the snack company will streamline its organization enabling the company to re-invest in business initiatives that will strengthen its leadership position and create capabilities for continued growth.

Frito-Lay’s restructure will result in a reduction of approximately 200 to 250 associates, with the exact number to be determined. This represents about half of one percent of Frito-Lay’s 46,000-person national workforce, with the majority of associates affected from salaried positions at its Plano-area headquarters and HQ-related roles across the country. This action will have no impact on frontline associates. Frito-Lay will notify affected associates in early December and will begin working on details related to severance packages, transition benefits and job placement assistance.

“Streamlining our business accelerates Frito-Lay’s drive for greater simplicity, flexibility and speed – and it also enables us to step up our investments in consumer and customer focused innovation, our selling systems and supply chain infrastructure,” said Irene Rosenfeld, Frito-Lay Chairman and CEO. “We recognize the personal implications of these actions are significant, especially when the business is as strong as ours, and we wanted to establish an open environment that allows for treating our people with the greatest consideration and assistance to ensure a smooth transition.”

Frito-Lay is the $10 billion convenient food division of PepsiCo, which is based in Purchase, NY.