In a strategic move to optimize its operations, PepsiCo announced on Wednesday that it will close four bottling plants across the United States, leading to the layoff of almost 400 employees. The decision, part of the company’s broader efforts to streamline its production, will impact plants in Cincinnati, Chicago, Harrisburg (Pennsylvania), and Atlanta.
According to PepsiCo, the Chicago plant will be the only facility to close entirely, affecting 131 employees. Meanwhile, in Cincinnati, 136 workers will be impacted; Harrisburg will see 127 layoffs; and Atlanta will have fewer than 50 affected employees. Sales, delivery, and warehouse functions will continue at the remaining three locations, ensuring minimal disruption to regional operations.
This decision follows PepsiCo’s recent forecast revision earlier in October, when the company lowered its annual sales expectations amid declining demand for its beverages and snacks in the U.S., China, and other global markets. Price increases in recent years have contributed to a 3% dip in North American beverage sales in the second and third quarters of 2023. Additionally, the company reported a 5% fall in net income to $2.9 billion during the July-September period.
As PepsiCo, headquartered in Purchase, New York, works to drive efficiency and productivity, the company assured that affected employees would continue receiving pay and benefits for 60 days, even though most will not be required to continue working during that time.
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