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PepsiCo to close 3 more bottling plants, lay off hundreds
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PepsiCo to close 3 more bottling plants, lay off hundreds

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PepsiCo is closing three more bottling plants, leading to the loss of more than 300 jobs as the beverage giant streamlines its manufacturing network.

The company said it had stopped production in Cincinnati; Harrisburg, Pennsylvania; and Atlanta. The closures will cause 136 people in Cincinnati, 127 in Harrisburg and fewer than 50 people in Atlanta to lose their jobs. PepsiCo said each location would continue to operate a warehouse.

The closure of these sites comes just three days after PepsiCo abruptly closed a factory, its last factory in the city of Chicago which employed 131 people.

“We are investing in a more agile manufacturing network optimized to best meet dynamic consumer needs,” PepsiCo said in a statement to Food Dive. “As a result, we have stopped production operations at four sites. »

PepsiCo this month lowered its sales outlook for the year as consumers forgo buying drinks and snacks to save money amid rising prices. The New York-based company said Beverage volume in North America is down 3.5% in 2024 so far..

PepsiCo is the latest company to announce factory closures as companies seek to increase the efficiency of their production networks and align supply with demand. Wonder Bread Maker Flower foodgiant of canned fruit and vegetables Del Monte Foods and manufacturer Slim Jim Conagra Brands are just some of the companies announcing factory closures.

In some cases, companies are closing some facilities while opening other locations.

PepsiCo is build a 1.2 million square foot manufacturing facility in Coloradothis will be its largest factory in the United States. The installation would be late. Earlier this year, PepsiCo announced the permanent closure of a Danville, Illinois locationthe Quaker Oats factory which was temporarily closed after the products it manufactured were recalled due to Salmonella contamination.

Campbell Soup also said in May that it was close one plant and downsize a second facility. The soup and snack maker also announced it would invest $230 million through fiscal 2026 in newer, more efficient factories in an effort to improve the competitiveness of its supply chain.