News Summary
PepsiCo has announced it will lay off 83 employees as it shuts down its Detroit manufacturing plant, effective September 2025. The decision affects multiple workers, with the company providing support and job placement assistance. Despite improved earnings, PepsiCo faces challenges in North American beverage sales, adapting to changing consumer preferences. The company invests in health-focused products, emphasizing modernization efforts amid operational cost increases.
Detroit
PepsiCo has announced it will lay off 83 employees as it ceases manufacturing operations at its Detroit plant, effective September 27, 2025. The facility, located at 1555 Mack Avenue, will discontinue its production, maintenance, and transport activities, impacting several workers in the area.
Approximately 11 of the affected employees are represented by Teamsters Local 337 and Operating Engineers 324. All employees impacted by the layoffs were notified on July 21, 2025. Although the manufacturing side of the operations will be closed, teams involved in warehouse, fleet, delivery, sales, and field-service technician roles will continue to operate at the Detroit site.
PepsiCo has committed to supporting the affected employees during this transition. The company is providing information about other job openings within the organization and is actively assisting in placing these employees at nearby facilities. Affected workers will receive their wages and benefits through their last day of employment, and retirement and group insurance benefits will be administered in accordance with applicable employee benefit plans.
Company Performance and Strategy
Despite announcing the layoffs, PepsiCo reported better-than-expected earnings in the second quarter of 2025. However, the company has indicated a 2% drop in North American beverage sales, signaling challenges in that segment of its business. Additionally, PepsiCo has revealed plans to launch high-protein versions of its snacks and protein beverages in reaction to changing consumer preferences.
As part of its modernization efforts, PepsiCo aims to phase out artificial colors and ingredients while also adjusting its financial expectations for the full year due to increased operational costs and a decrease in consumer spending.
Industry Trends and Challenges
Recent trends indicate that PepsiCo’s beverage sector has faced difficulties as consumer preferences have shifted away from sugary drinks, reflecting a broader industry change toward health-conscious choices. This shift has prompted the company to previously announce closures of bottling plants in Ohio, Pennsylvania, Illinois, and Georgia, alongside snack facilities in New York and California.
In response to the evolving market landscape, PepsiCo has made significant investments in health-focused products. Notably, the company acquired probiotic soda company Poppi for $1.95 billion, demonstrating its commitment to aligning with consumer health trends.
Conclusion
The decision to lay off employees in Detroit is part of PepsiCo’s strategic adjustments to align with the changing demands of consumers while addressing operational challenges. As the company navigates these transitions, it continues to focus on enhancing its product lineup and restructuring its operations in response to market dynamics.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- ClickOnDetroit: PepsiCo to Cut 83 Jobs at Detroit Facility
- MLive: Why Pepsi Is Cutting 83 Jobs in Southeast Michigan
- Food Manufacturing: PepsiCo to End Production at Detroit Plant
- Food Dive: PepsiCo to Close Portion of Detroit Plant
- Wikipedia: PepsiCo
Author: STAFF HERE DETROITMI WRITER
DETROIT STAFF WRITER The DETROIT STAFF WRITER represents the experienced team at HEREDetroitMI.com, your go-to source for actionable local news and information in Detroit, Wayne County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Movement Electronic Music Festival, Detroit Grand Prix, and America's Thanksgiving Parade. Our coverage extends to key organizations like the Detroit Regional Chamber and Focus HOPE, plus leading businesses in automotive and healthcare that power the local economy such as General Motors, Ford Motor Company, and Henry Ford Health. As part of the broader HERE network, including HEREGrandRapids.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
