Taco Bell Cuts 3 Divisions in Reorganization

Taco Bell has eliminated three divisional posts as part of a restructuring at the Mexican-style fast-food chain.

The three vice presidents who headed Taco Bell’s western, eastern and southern divisions have been reassigned within the chain’s Irvine headquarters or within Pepsico Inc., which is Taco Bell’s parent, said company spokesman Elliot Bloom.

As part of the reorganization, Taco Bell eliminated the three divisions and, instead, has 12 zones reporting directly to corporate headquarters.

The restructuring will result in “less than 25 layoffs,” Bloom said Wednesday.

Taco Bell reported the restructuring this week along with fourth-quarter earnings.

The chain’s operating income rose 12%, to $28.6 million, despite a $5.5-million one-time charge for costs related to the reorganization. Without the one-time charge, Taco Bell’s operating income in the fourth quarter climbed 33%.

Taco Bell’s fourth-quarter sales climbed 18%, to $483.2 million.