PepsiCo Closing 4 Beverage Bottling Plants, Cutting 400 Jobs

PepsiCo plans to close a total of four US bottling plants and lay off nearly 400 workers as part of its efforts to streamline its operations, AP News reported.

Tuesday it was announced the beverage and snacks giant closed its Chicago bottling plant with no notice to employees.

The company said the closures will impact 136 workers in Cincinnati, OH; 131 in Chicago; 127 in Harrisburg, PA; and fewer than 50 in Atlanta, GA.

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% in both the second and third quarters of this year, according to AP News.

Purchase, NY-based PepsiCo said affected employees will be paid and receive benefits for 60 days even though most will not be required to work during that time.