PepsiCo said Wednesday it plans to close four US bottling plants and lay off nearly 400 workers as part of its efforts to streamline its operations.
Earlier this month, PepsiCo lowered its sales forecast for the year as consumers in the US, China and elsewhere pulled back on buying its drinks and snacks after years of price hike
PepsiCo said Wednesday it plans to close four US bottling plants and lay off nearly 400 workers as part of its efforts to streamline its operations.
The company said 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 the only one that will fully close. PepsiCo confirmed that closure earlier this week. The company said sales, delivery and warehouse functions will continue at the other three locations.
Earlier this month, PepsiCo lowered its sales forecast for the year as consumers in the US, China and elsewhere pulled back on buying its drinks and snacks after years of price hikes. PepsiCo's North American beverage sales fell 3 per cent in both the second and third quarters of this year.
PepsiCo's net income fell 5 per cent to $ 2.9 billion in the July-September period. The company has repeatedly said it is sharply focused on efficiency and productivity gains.
PepsiCo, which is based in Purchase, New York, said affected employees will be paid and receive benefits for 60 days even though most will not be required to work during that time.