PepsiCo is closing three more bottling plants, resulting in more than 300 job losses as the beverage giant streamlines its manufacturing network.
The company said it has stopped production in Cincinnati; Harrisburg, Pennsylvania; and Atlanta. The closures will result in 136 people in Cincinnati, 127 in Harrisburg and fewer than 50 individuals in Atlanta losing their jobs. PepsiCo said each location will continue to operate a warehouse.
The shuttering of these locations comes just three days after PepsiCo abruptly closed a plant its last plant in the city of Chicago that employed 131 people.
“We’re investing in a more agile and optimized manufacturing network to best meet dynamic consumer needs,” PepsiCo said in a statement to Food Dive. “As a result, we have stopped production operations in four locations.”
PepsiCo this month lowered its sales outlook for the year as consumers pull back on purchasing beverages and snacks to save money amid a run-up in prices. The New York-based company said beverage volume in North America so far is down 3.5% in 2024.
PepsiCo is the latest company to announce plant closures as businesses look to increase the efficiency of their production networks and bring supply in line with demand. Wonder bread maker Flowers Foods, canned fruit and vegetable giant Del Monte Foods and Slim Jim manufacturer Conagra Brands are just a few of the companies to announce the shutdown of plants.
In some cases, companies are closing some facilities while opening other locations.
PepsiCo is constructing a 1.2 million-square-foot manufacturing facility in Colorado, that will be its largest plant in the U.S. The facility is reportedly behind schedule. Earlier this year, PepsiCo announced it was permanently closing a Danville, Illinois, Quaker Oats plant that was temporarily shuttered after products it made were recalled due to Salmonella contamination.
Campbell Soup also said in May it was closing one plant and reducing the size of a second facility. The soup and snacks maker also announced it would invest $230 million through fiscal 2026 in newer, more efficient plants as it aims to improve the competitiveness of its supply chain.
