PepsiCo Slashes Workforce, Closes 4 U.S. Bottling Plants in Major Streamlining Move

PepsiCo announced on Wednesday its decision to close four bottling plants across the United States, resulting in the layoff of approximately 400 employees, as part of its operational streamlining strategy.

Pepsi Job Cuts Nationwide

The closures will affect 136 employees in Cincinnati, 131 in Chicago, 127 in Harrisburg, Pennsylvania, and under 50 in Atlanta. Of these, only the Chicago plant will completely shut down, as confirmed earlier this week. Meanwhile, sales, delivery, and warehouse activities will continue at the other three facilities.

This move follows the company’s recent sales forecast downgrade due to reduced consumer spending in the US, China, and other markets, after consistent price increases over the years. The company’s North American beverage sales saw a 3 percent decline in both the second and third quarters of the year.

The company’s net income also dropped by 5 percent to USD 2.9 billion in the July-September period. The company has emphasized its focus on improving efficiency and productivity.

Based in Purchase, New York, PepsiCo stated that affected employees would receive pay and benefits for 60 days, with most not required to work during that period.

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