USA – PepsiCo has announced the closure of four bottling plants in the United States, resulting in nearly 400 layoffs as part of an operational streamlining initiative.
Affected locations include Cincinnati, Chicago, Harrisburg, Pennsylvania, and Atlanta, with each city facing significant job cuts.
The decision impacts 136 workers in Cincinnati, 131 in Chicago, 127 in Harrisburg, and fewer than 50 in Atlanta.
While the Chicago facility will fully close, PepsiCo stated that the other locations will maintain sales, delivery, and warehouse functions.
PepsiCo clarified that the Chicago plant, located on 51st Street, is over 60 years old and has “physical limitations” that have contributed to the decision.
According to AP News, Teamsters Local 727, which represents many of the impacted employees, was notified by PepsiCo attorneys via email on October 28.
The union alleges that PepsiCo failed to provide the federally mandated 60-day advance notice for plant closures or mass layoffs.
Teamsters Local 727 secretary-treasurer John Coli Jr. expressed concern that the union was not informed of potential closures during recent contract negotiations and is considering legal action against the company.
PepsiCo’s decision follows a recent reduction in its annual sales forecast. Amid consumer cutbacks in response to prolonged price increases, PepsiCo has seen lower sales across key markets, including the U.S. and China.
Sales for PepsiCo Beverages North America (PBNA) fell by 3 percent in the second and third quarters of this year, with net income down by 5 percent to US$2.9 billion for the July-September period.
PBNA emphasized the company’s focus on creating a more “agile and optimized manufacturing network” to better serve evolving consumer needs.
“We have stopped production operations in four locations,” PepsiCo said. “In Cincinnati, Harrisburg, and Atlanta, we will continue to operate a warehouse to serve our local customers and communities. Supporting employees during this transition remains our top priority.”
PepsiCo confirmed that affected employees will continue receiving pay and benefits for 60 days, even though most will not be required to work during that period.
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