The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

PepsiCo has revealed it will be discontinuing its production, maintenance and transport operations at its facility in Detroit, Michigan, this September.

The F&B giant submitted a Workers Adjustment and Retraining Notification Act (WARN) last week, providing notice of layoffs to the employees set to be impacted.

In a letter sent to Detroit’s mayor, Mike Duggan, PepsiCo Beverages’ senior HR manager Ashley Benson confirmed that the manufacturing, maintenance and transport operations will be ceased at the site, effective from 27 September 2025.

The facility’s warehouse, fleet, delivery, sales and field-service technician teams will continue to operate from the location.

Approximately 84 employees are set to be impacted by the decision, most of whom are currently employed in technical roles at the site.

In a statement, PepsiCo Beverages US said: “We are committed to supporting those impacted through this transition, and we are offering pay and benefits to impacted employees".

The letter to mayor Duggan states that PepsiCo is providing employees with information on other job openings and actively working to place them at nearby facilities.

In the US, PepsiCo is currently undergoing a strategic focus on intensifying its productivity initiatives as it seeks to enhance operational efficiencies and integrate its North American operations.

According to executive vice president and CFO, James T Caulfield, the second half of the fiscal year is expected to deliver approximately 70% more productivity than the first half, driven by initiatives such as plant closures and workforce optimisation.

The company has been working to enhance its portfolio amid evolving consumer preferences and a shift toward more health-oriented products, last week announcing the launch of Pepsi Prebiotic Cola – a new line combining Pepsi’s familiar flavour with functional benefits amid growing awareness of gut health.

The launch follows PepsiCo’s acquisition of functional soda brand Poppi earlier this year, snapped up for approximately $1.95 billion.