PepsiCo has announced plans to streamline its operations by closing four U.S. bottling plants and cutting nearly 400 jobs. The closures will impact 136 workers in Cincinnati, 131 in Chicago, 127 in Harrisburg, Pennsylvania, and fewer than 50 in Atlanta.
The Chicago plant is set to fully close, a decision confirmed by PepsiCo earlier this week. In contrast, the other three locations will continue to operate in sales, delivery, and warehouse functions.
Earlier this month, PepsiCo revised its sales forecast downward for the year, citing reduced consumer spending on its beverages and snacks in the U.S., China, and other markets following years of price increases. This has resulted in a 3% decline in North American beverage sales in both the second and third quarters of this year.
PepsiCo, based in Purchase, New York, said its net income fell 5% to $2.9 billion in the July-September period. The company has repeatedly stated that it is sharply focused on efficiency and productivity gains. Affected employees will be paid and receive benefits for 60 days even though most will not be required to work during that time.
