PepsiCo is making changes to its Detroit facility in response to declining consumer demand, resulting in the closure of certain operations.
The company will be discontinuing production, maintenance, and transport operations at the beverage facility on Sept. 27, while other teams such as warehouse, fleet, delivery, sales, and field-service technicians will continue to operate at the location.
About 83 employees will be affected by the layoffs, with PepsiCo stating that they are committed to supporting those impacted by offering pay and benefits during this transition.
This move is part of PepsiCo’s efforts to consolidate operations, following previous closures of bottling plants in Ohio, Pennsylvania, Illinois, and Georgia, as well as snack facilities in New York and California.
PepsiCo’s beverage business has faced challenges due to changing consumer preferences, with volumes in its North American beverage operations declining by 2% despite the success of Pepsi Zero Sugar.
In an attempt to attract health-conscious consumers, PepsiCo will be launching prebiotic versions of its Pepsi soda this fall.