PepsiCo is consolidating its manufacturing operations by closing three more bottling plants, leading to over 300 job losses as part of its restructuring efforts.
The company has ceased production at facilities in Cincinnati, Harrisburg, and Atlanta, resulting in 136, 127, and fewer than 50 job cuts, respectively. Despite the closures, each location will maintain warehouse operations.
These closures follow the recent shutdown of PepsiCo’s plant in Chicago, affecting 131 employees.
“We are enhancing our manufacturing network to better adapt to evolving consumer preferences,” PepsiCo stated in response to the changes. “As a result, production has ceased at four locations.”
Amid a decline in beverage and snack sales, PepsiCo has revised its sales forecast for the year. The company reported a 3.5% decrease in beverage volume in North America in 2024.
Joining a trend of plant closures across industries, PepsiCo is aligning its production capacity with market demand. Other companies like Flowers Foods, Del Monte Foods, and Conagra Brands have also announced plant closures.
While some companies are consolidating operations, PepsiCo is expanding with the construction of a 1.2 million-square-foot facility in Colorado. The company also recently closed a Quaker Oats plant in Danville, Illinois, due to product recalls.
In a similar move, Campbell Soup disclosed plans to shutter one plant and downsize another while investing $230 million in newer, more efficient facilities to enhance its supply chain competitiveness.