PepsiCo to end manufacturing operations at Maryland bottling plant, cutting 143 jobs

PepsiCo Cheverly closure and the affected workforce

PepsiCo is ceasing manufacturing and warehouse operations at its Pepsi Bottling Group plant in Cheverly, Maryland, a move that will result in 143 layoffs, according to a WARN notice and a statement from the beverage giant. The affected employees work in fleet, transport, manufacturing and warehouse operations, and some are salaried workers. PepsiCo said 98 of the workers being laid off are represented by a union.

Company rationale and shift in consumer demand

A PepsiCo spokesperson attributed the decision to changes in consumer demand, technology and the company's operating network. "This decision was not made lightly," the spokesperson said. "We must continue optimizing and modernizing our network to best serve customers and consumers." The Cheverly facility has been operating for more than 60 years, according to local news reports cited in the coverage.

Severance timing and continuation of sales and delivery

Impacted employees will continue to receive pay and benefits through Nov. 13, a PepsiCo spokesperson said in an email. PepsiCo expects sales and delivery operations to continue without disruption, the company said in the WARN letter.

Fit within PepsiCo's broader supply-chain restructuring

Earlier in 2026, PepsiCo closed a Frito-Lay distribution plant in California, resulting in 248 layoffs, the latest in a series of closures by the food and beverage maker over the last several years as it works to modernize its supply chain. PepsiCo has also been expanding its beverage portfolio with better-for-you alternatives such as Poppi to keep up with changing consumer preferences.

Follow-up signals

The next verifiable milestone tied to the Cheverly closure is the Nov. 13 cutoff at which PepsiCo will end pay and benefits for the 143 affected workers.