PepsiCo May Close UK Factory, Cut Jobs in Philly
Despite hesitancy from some companies in carrying out business in a post-Brexit U. K. full of uncertainty, Pepsi has made it clear
that this is not the case, indicating that crisps (what Americans call potato chips) currently produced at the site would be manufactured at other sites in Britain.
The new legislation, which became effective Jan. 1, imposed a tax of 1.5% on sugary
and diet drinks as part of a larger initiative to fight obesity and diabetes, which affect healthcare and lost-productivity costs.
The American food and beverage leader also announced plans today regarding job cuts in Philadelphia, where 80 to 100 workers will lose their jobs.
Purchase, N. Y.-based snack and beverage maker PepsiCo Inc. (PEP) is considering
shutting down its Walkers Crisp factory in northern England, reports Reuters.
The factory close would place 400 U. K. jobs at risk in a move set to boost PepsiCo’s productivity and efficiency savings.
Pepsi says the initiative is “crucial for ensuring the long-term sustainable growth
of our businesses,” while indicating the decision has “nothing to do” with Brexit.