OHIO — PepsiCo announced Wednesday that it will close four U.S. bottling plants and lay off almost 400 workers as part of a streamlining effort aimed at enhancing efficiency and productivity.
The closures will impact 136 employees in Cincinnati, 131 in Chicago, 127 in Harrisburg, Pennsylvania, and fewer than 50 in Atlanta.
The Chicago facility will be the only one fully shuttered, with PepsiCo confirming the closure earlier this week.
The company stated that sales, delivery, and warehouse functions will continue at the Cincinnati, Harrisburg, and Atlanta locations, though bottling operations will cease.
This move follows PepsiCo’s decision earlier this month to revise its annual sales forecast downward, citing a decline in consumer demand for its products in markets like the U.S. and China.
After years of price increases, sales of PepsiCo’s North American beverages dropped by 3% in both the second and third quarters of this year. Net income also fell by 5%, to $2.9 billion, for the July-September period.
PepsiCo, headquartered in Purchase, New York, emphasized that it remains committed to productivity gains. Affected employees will receive pay and benefits for 60 days, although most will not be required to work during that period.
