PepsiCo Restructures: US Plant Closures and Layoffs Announced

PepsiCo plans to streamline operations by closing four US bottling plants, affecting nearly 400 workers. The Cincinnati, Chicago, Harrisburg, and Atlanta facilities are involved, with only Chicago seeing a full closure. These changes come as PepsiCo faces declining sales and net income in recent quarters.

PepsiCo announced plans to close four bottling plants in the United States, resulting in nearly 400 layoffs, as part of an effort to streamline its operations.

The closures will affect 136 employees in Cincinnati, 131 in Chicago, 127 in Harrisburg, Pennsylvania, and fewer than 50 in Atlanta. Notably, the Chicago facility will be the only one to fully close, a decision confirmed earlier in the week. Despite these closures, sales, delivery, and warehouse functions are projected to continue at the other three sites.

The company, which recently adjusted its sales forecast downward due to reduced consumer spending in key markets, reported a 5% decline in net income for the July-September quarter. PepsiCo has reiterated its focus on efficiency and productivity as it counteracts the impact of falling beverage sales in North America.

(With inputs from agencies.)