PepsiCo has confirmed that it will cease manufacturing operations at its Detroit facility, marking the end of an era for the company's presence in the Motor City that spanned over 80 years. According to a statement obtained by FOX 2 Detroit, the discontinuation affects manufacturing, transport, and maintenance operations, yet other aspects of the company's business—such as warehouse, fleet, delivery, sales, and field service teams—will remain operational in the area.
The number of employees facing layoffs is currently unknown, the shutdown follows an 80-year history of Pepsi in Detroit and arrives on the heels of better-than-expected second-quarter numbers reported by PepsiCo just a week ago. As per a FOX 2 Detroit article, the facility on Mack Ave employed about 400 individuals as of 2020, and the company had filed a notice for the layoffs as is mandated by the Federal Worker Adjustment and Retraining Notification (WARN) Act, although the notice was not yet visible on the state's WARN site.
While PepsiCo has not disclosed the number of employees who will be affected by the closure, they have conveyed a commitment to support those impacted through the transition, offering pay and benefits. "We are committed to supporting those impacted through this transition, and we are offering pay and benefits to impacted employees," the company stated in communications released by CBS News and the Detroit Free Press. Questions regarding the precise number of layoffs, and the specific dates of the announcement and plant closure have not been addressed by a PepsiCo spokesperson.
The decision to shut down certain operations in Detroit contributes to a series of facility closures for PepsiCo, which included shutting down four plants across the country – in Cincinnati, Chicago, Atlanta, and Harrisburg, Pennsylvania – less than a year ago, following soft quarterly reports. Despite the recent closures, PepsiCo remains a major player in the beverage industry, known for its range of products including Pepsi, Gatorade, and Mountain Dew. This development is a significant shift for the company, which has seen a decline in sales over recent years and dropped to the fourth rank among America's best-selling soft drinks, trailing behind Coca-Cola, Dr. Pepper, and Sprite, as reported by FOX 2 Detroit.
