Washington, D.C./ Retail & Industry

PepsiCo Cuts 98 Jobs at Cheverly Plant, Same-Day Notice Raises Legal Questions

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Published on September 16, 2026
PepsiCo Cuts 98 Jobs at Cheverly Plant, Same-Day Notice Raises Legal QuestionsSource: Google Street View

PepsiCo has laid off 98 of the 143 workers at its Cheverly bottling and distribution facility, wiping out nearly 70% of the workforce there in a move that took effect the same day the company notified local officials. The cuts hit fleet, transport, manufacturing, warehouse, and other positions at the plant located at 2611 Pepsi Place near the Baltimore-Washington Parkway, while sales and delivery operations are expected to continue without disruption.

According to WJLA, Cheverly town officials had reached out to PepsiCo about the future of the facility and were reportedly told the company would keep sales and delivery running even as production winds down. Cheverly Town Administrator Dyland Galloway said the affected workers face uncertainty and hardship as a result of the reduction, and town officials say they are committed to connecting displaced employees with available resources.

The layoffs took place Monday, according to the Town of Cheverly.

A Union Workforce and an Uncertain Timeline

All 98 affected workers are unionized employees represented by Teamsters Local 639 for collective bargaining.

The timing of PepsiCo's notice is where things get complicated. Maryland's Economic Stabilization Act, the state's mini-WARN law, requires covered employers with 50 or more workers to give at least 60 days of written advance notice to employees, local officials, and the state labor department before a mass layoff or reduction in operations, according to Ogletree Deakins. Final regulations enforcing that mandatory notice period took effect October 13, 2025, and they carry civil penalties of up to $10,000 per day for employers that fail to comply, the firm notes.

Part of a Larger Pattern for PepsiCo

Cheverly is not an isolated case. The layoffs resemble other PepsiCo facility actions, including the scheduled September 27, 2025, elimination of 83 manufacturing, maintenance, and transport jobs at its Mack Avenue plant in Detroit while warehouse, fleet, sales, and technician teams continued running there, according to the Hoodline.

The company's restructuring push goes back further still. In October 2024, PepsiCo announced the closure of four U.S. bottling plants in Chicago, Cincinnati, Harrisburg, and Atlanta, eliminating nearly 400 positions after a 3% drop in North American beverage sales volume over consecutive quarters, according to AP News. The discussion here focuses on PepsiCo.

Cheverly's Economic Backdrop

The job losses land in Prince George's County.

Just up the road, developers are preparing for a 2027 groundbreaking on Cheverly Hill, a $550 million mixed-use redevelopment at the 44-acre former Prince George's Hospital Center site that will eventually add more than 1,300 homes along with retail and office space. The contrast between that planned investment and the sudden loss of manufacturing jobs at the Pepsi plant underscores the uneven nature of the town's economic outlook heading into next year.