PepsiCo closing 4 US bottling plants, cutting 400 jobs as it streamlines operations.

As part of its efforts to streamline its operations, PepsiCo announced on Wednesday that it would close four bottling facilities in the United States and lay off over 400 employees.

Plants that are closed

According to the corporation, 136 employees in Cincinnati, 131 in Chicago, 127 in Harrisburg, Pennsylvania, and less than 50 in Atlanta will be affected by the closures. Only the Chicago plant will shut down completely.

Earlier this week, PepsiCo announced the shutdown. According to the corporation, operations at the other three locations will still include sales, delivery, and warehousing.

Reason Behind Closing

Following years of price increases, PepsiCo reduced its sales projection for the year earlier this month as consumers in the US, China, and other countries reduced their purchases of its drinks and snacks.

In the second and third quarters of this year, PepsiCo’s beverage sales in North America decreased by 3%.

From July to September, PepsiCo’s net profits dropped 5% to USD 2.9 billion. The business has stated time and time again that efficiency and productivity increases are its top priorities.

According to Purchase, New York-based PepsiCo, impacted workers will be compensated and get benefits for 60 days, even though the majority won’t have to work during that period.

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