Quaker Fires 3 Top Execs in Shake-Up

Quaker Oats Co. fired three top executives, including the head of its profitable Gatorade division, as part of a reorganization by new Chairman Robert Morrison to scale back the size of the company. The Chicago-based maker of cereal and beverages also said it will buy back as much as $1 billion in stock, or about 13% of its outstanding shares. Morrison said the moves would be the “first step” in a wide-ranging effort to make Quaker more profitable. The reorganization plan removes a layer of executive management and appoints new unit leaders who will report directly to Morrison. Morrison joined Quaker last October, six months after the food and beverage company sold its troubled Snapple drink line, which it bought for $1.8 billion in 1994, for $550 million. The reorganization will result in a pretax charge of $15 million to $25 million, but the company did not say when the charge would be taken. Quaker shares rose 94 cents to close at $57.75 on the New York Stock Exchange.