FILE-Bottles of Pepsi soda are seen on display at a Target store on February 09, 2024 in New York City. (Photo by Michael M. Santiago/Getty Images)
PepsiCo is set to close four bottling plants in the U.S. and will lay off nearly 400 employees in efforts to improve its operations.
The New York-based organization tells the Associated Press that the plant closings will impact 136 workers in Cincinnati; 131 in Chicago; 127 in Harrisburg, Pennsylvania; and fewer than 50 in Atlanta.
PepsiCo’s Chicago plant is the only facility that is fully closing, news that the organization confirmed this week. The snack and beverage company tells the AP that sales, delivery, and warehouse functions will continue at the other three facilities.
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Employees impacted by the closings will be paid and receive benefits for 60 days even though most will not be required to work during that time.
The AP noted that PepsiCo lowered its sales projections for the year earlier this month as consumers in the U.S., China and other locations scaled back on purchasing drinks and snacks after years of price surges.
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Beverage sales in North America plummeted 3% for PepsiCo for the second and third quarters of 2024.
Additionally, the company’s net income dropped 5% to $2.9 billion in the July-September period. PepsiCo said it is focused on efficiency and productivity gains, the AP reported.