Pepsi issues stern message to employees after mass closures | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

PepsiCo is facing significant headwinds amid shifting consumer demand in its U.S. market, navigating a challenging period marked by sales declines and slowdowns.

In an effort to adapt to falling demand, the company has begun consolidating operations, intending to boost production efficiency and reduce excess costs.

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These restructuring changes have resulted in mass manufacturing plant closures in under two years, which have caused hundreds of employees to lose their jobs, leaving them vulnerable in a climate of economic uncertainty and stubborn inflation.

During its second quarter of fiscal 2025, Pepsi reported a 2% drop in its North American beverages division, highlighting a clear shift in consumer behavior.

To add to its pressures, the company’s stock has fallen more than 16% over the past year, sparking investor concerns over long-term growth.

Pepsi announces the partial closure of its Detroit manufacturing plant.

Image source&colon; Mordant/Bloomberg via Getty Images

Pepsi to shut down Detroit manufacturing plant, impacting dozens of jobs

Pepsi (PEP) has announced it is partly closing its Detroit manufacturing plant, with production, maintenance, and transport operations scheduled to cease on September 27, according to the filed WARN notice.

However, this doesn’t mean the facility will be completely shut down. Its warehouse, fleet, deliveries, sales, and field-service technician teams will continue operating as usual at this site.

Still, approximately 83 employees will be laid off due to the operational changes.

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Pepsi stated in the filing that it is assisting the affected employees by sharing information about job opportunities and actively working to relocate them to nearby facilities.

In the meantime, all impacted workers will continue to receive their wages and benefits until their last day of employment with the company.

Pepsi’s Detroit closure follows a series of nationwide facility shutdowns

The upcoming partial closure of Pepsi’s Detroit manufacturing plant is the latest in a series of shutdowns in recent years, signaling a major restructuring process for the company.

In 2024, Pepsi closed four bottling plants in Ohio, Pennsylvania, Illinois, and Georgia, resulting in over 400 total employee layoffs.

This year alone, the company shuttered two Frito-Lay facilities: one in Liberty, New York, which affected 287 workers, and another in Rancho Cucamonga, California, which laid off 480 employees.

However, Pepsi is not the only company struggling with weakening demand and financial challenges.

Del Monte Foods (FDP) announced the closure of a fruit processing facility and two warehouses in Yakima, Washington, effective August 8. The closure will impact 51 full-time workers and 448 seasonal employees.

Cereal company Post Holdings (POST) is also closing two cereal manufacturing plants, one in Sparks, Nevada, and another in Cobourg, Ontario. Both are expected to cease operations by the end of December, affecting around 300 employees.