PepsiCo is ceasing manufacturing and warehouse operations at a bottling plant in Maryland, which will result in 143 layoffs, according to a WARN notice and statement from the beverage giant.
The employees impacted at the Pepsi Bottling Group in Cheverly work in fleet, transport, manufacturing and warehouse operations, according to the notice. Some are salaried workers. PepsiCo said 98 of the employees being laid off are represented by a union.
PepsiCo pointed to changes in consumer demand, technology and its operating network as reasons for the decision. The plant has been operating for more than 60 years, according to local news reports.
“This decision was not made lightly,” the PepsiCo spokesperson said. “We must continue optimizing and modernizing our network to best serve customers and consumers.”
PepsiCo expects sales and delivery operations to continue without disruption, it said in a WARN letter. Impacted employees will continue to receive pay and benefits through Nov. 13, a PepsiCo spokesperson said in an email.
Earlier this year, PepsiCo shuttered a Frito-Lay distribution plant in California, which resulted in 248 layoffs. It was the latest closure by the food and beverage maker during the last several years to modernize its supply chain.
Over the last several years, PepsiCo has worked to build out its beverage business with better-for-you alternatives like Poppi to keep up with changing consumer preferences.
