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PepsiCo to cut 83 jobs at Detroit facility. Here’s why

PepsiCo ending manufacturing operations at Detroit plant

NEW YORK, NEW YORK - FEBRUARY 09: Bottles of Pepsi soda are seen on display at a Target store on February 09, 2024 in the Flatbush neighborhood of Brooklyn borough New York City. PepsiCo reported a drop in their fourth quarter sales due the price hikes on their products that the company passed on to consumers because of higher production costs. (Photo by Michael M. Santiago/Getty Images) (Michael M. Santiago, 2024 Getty Images)

DETROIT – PepsiCo is set to cut 83 employees as it shuts down its manufacturing operations at the Detroit plant.

The company announced it is ending its production, maintenance and transport operations at its facility at 1555 Mack Avenue in Detroit, according to a Workers Adjustment and Retraining Notification Act (WARN) notice.

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Due to this change, approximately 83 employees are set to be cut, effective Sept. 27, 2025.

The company’s warehouse, fleet, delivery, sales and field-service technician teams will continue to operate at the Detroit facility, according to the notice.

Approximately 11 of the employees that will be terminated are represented by Teamsters Local 337 and Operating Engineers 324.

The company said that all affected employees were notified on July 21, 2025.

“We are providing information to affected employees about other job openings and actively working to place them at nearby facilities,” PepsiCo said in the notice. “All affected employees will be paid wages and benefits through their last day of employment with PepsiCo, Inc. Any retirement and group insurance benefits to which employees are entitled will be provided in accordance with the terms of the applicable employee benefit plans.”

In July, PepsiCo reported better-than-expected earnings in the second quarter and said that it was confident new and revamped products could boost sales in North America during the second half of the year.

The company has plans to launch high-protein versions of its best-selling snacks and launch protein beverages this year.

“Consumers are adopting protein solutions in their diets at a pace that was not the case in a few years back,” Laguarta said. “We can provide democratized solutions at large scale. That’s what we’re trying to do.”

PepsiCo is also working to speed up its plan to phase out artificial colors and ingredients.

The company lowered its full-year earnings expectations in April due to increased costs from tariffs and a pullback in consumer spending. The company reaffirmed that in July.

Read more --> PepsiCo overcomes lagging US sales in a strong second quarter


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