PepsiCo announced today its decision to shutter four of its U.S. bottling plants and lay off close to 400 employees as part of a broader effort to streamline operations. The closures will affect 136 employees in Cincinnati, 131 in Chicago, 127 in Harrisburg, Pennsylvania, and fewer than 50 in Atlanta.
PepsiCo’s response to impacted employees includes paid compensation and benefits for 60 days, though the majority will not be required to work during this period. The company reiterated its commitment to supporting these workers through the transition.
The company confirmed that the Chicago facility is the only plant that will fully close, while sales, delivery, and warehouse operations will continue at the remaining three locations. This move aligns with PepsiCo’s emphasis on boosting operational efficiency amid challenging market conditions.
Earlier this month, PepsiCo adjusted its annual sales forecast downward, pointing to decreased consumer spending in key markets such as the U.S. and China. This slowdown follows years of consistent price increases, which have impacted purchasing behavior. The company’s North American beverage sales saw a 3% decline in both Q2 and Q3 of this year. Additionally, PepsiCo’s net income for the July to September period fell by 5%, totaling USD 2.9 billion.