Pepsi, the second largest US beverage and snack-food maker hurt by the 9.6 per cent decrease in third quarter net income posted yesterday, announced 3,300 job cuts or roughly 1.8 per cent of its 185,000 work force and said it would close six plants, as part of its plan to save more than $1.2 billion over three years, citing ''macro economic turbulence and volatility in the currency markets.''

The job cuts that will take place in the fourth quarter will cost the company $550 million to $600 million before taxes.

The company, which makes Pepsi cola drinks, Walkers Crisps and Quaker Oats, said it expects to generate a pretax savings of more than $1.2 billion over the next three years, with a saving of $350 million to $400 million in 2009.

Chief Executive Indra Nooyi said in a statement, "While we can't control the macro economic situation, we can enhance PepsiCo's operating agility to respond to the changing environment."

In a statement, Pepsi said the net income was hurt by continued weakness in its domestic liquid refreshment beverage category as beverage sales in the US and Canada decreased 3 per cent in the third quarter as consumers cut back on soft drinks and saved money to spend on groceries and gasoline whose price had skyrocketed.

Indra Nooyi said, ''In the third quarter, our worldwide snacks and international beverage businesses performed well once again, we had solid top-and bottom-line results in the face of a challenging macro environment and the most difficult quarterly comparisons on commodity cost inputs.''

''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,'' she added.

The company said the majority of the $1.2 billion savings will be invested in its businesses, with the main focus being to restore growth to the North American beverage business which struggled with its beverage volume going down 2.5 per cent and Quaker Foods volume down 9 per cent but its Frito-Lay North volume was up marginally. A major Quaker plant in Iowa was affected by July floods.

Pepsi will also create new packages, retool brands and introduce beverages within its soft drink, Gatorade and Tropicana juice-product lines. Last week, trade publication Beverage Digest reported that Pepsi will make sweeping graphics changes for its big brands such as Pepsi, Mountain Dew and Sierra Mist and introduce a broad range of products and packages.

The company has been giving particular focus to its overseas operations, including plans to spend $ 500 million in India and to make acquisitions in locales such as Russia as its international profits rose 18 per cent and sales climbed 20 per cent.

It reported third-quarter net income of $1.58 billion, or $0.99 per share, compared with $1.74 billion, or $1.06 per share, in the same quarter last year.

Sales of $11.2 billion in the most recent period compared with $10.17 billion a year ago.

Atlanta-based Coca-Cola Co., PepsiCo's chief rival, will report third-quarter earnings today.