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PepsiCo is closing part of its operations at a Detroit facility as the snack and beverage giant aims to bring production in line with sagging consumer demand.
The company said in a Michigan WARN notice it will discontinue its production, maintenance and transport operations at the beverage facility on Sept. 27. PepsiCo said its warehouse, fleet, delivery, sales and field-service technician teams will continue to operate at the location.
Approximately 83 people will be laid off as part of the move, according to the WARN notice.
“We are committed to supporting those impacted through this transition, and we are offering pay and benefits to impacted employees,” PepsiCo said in a statement.
The partial closure marks the latest move by the New York-based company to consolidate operations. Last year, it announced it would shutter bottling plants in Ohio, Pennsylvania, Illinois and Georgia. PepsiCo also has closed snack facilities in New York and California.
PepsiCo’s beverage business has struggled as consumers continue to shift away from sugar-laden offerings. In the company’s most recent quarter, volumes in its North American beverage operations fell 2% despite strength in Pepsi Zero Sugar. Still, the performance marked a slight improvement from the 3% drop the unit posted in 2024.
Earlier this week, PepsiCo announced it will launch prebiotic versions of its namesake soda this fall to attract health-conscious consumers back to its Pepsi brand.
