Mass Layoffs Confirmed as Pepsi Pulls the Plug on Historic Detroit Plant
PepsiCo has confirmed dozens of layoffs at its long-standing Detroit facility, ending decades of production operations at the site.
The move will affect more than 80 employees and marks the latest in a string of corporate consolidations reshaping the beverage industry. For Detroit, where the plant has been a fixture for generations, the impact will be felt far beyond the factory floor.
A Layoff Announcement That Hits Home
The company officially notified Michigan state officials of the job cuts in a Worker Adjustment and Retraining Notification (WARN) notice dated July 21, 2025. The notice detailed PepsiCo’s plans to lay off approximately 83 employees at the Mack Avenue site, with layoffs taking effect on September 27, 2025. This facility has been part of the city’s industrial fabric for more than 80 years, making the announcement especially significant for workers and the surrounding community.
A Plant With History
The Detroit site has been a Pepsi production hub for over eight decades, serving as a key link in the company’s Midwest supply chain. Generations of Detroiters have worked at the plant, and its location near major transport corridors made it strategically valuable. The decision to end manufacturing at such a historic site underscores how dramatically the company’s operations are shifting.
Who’s Affected by the Cuts
Local reports state the layoffs primarily affect workers in production, maintenance, and transport. These departments represent the backbone of the plant’s manufacturing activity. PepsiCo has affirmed in the WARN email that warehousing, sales, and delivery functions will continue at the site, meaning it will retain a smaller workforce focused on distribution rather than production.
The Timeline for Layoffs
The layoffs are scheduled for late September 2025, giving employees only a short window to prepare for the transition. PepsiCo has said it will provide support, pay, and benefits during the transition period, though details on severance and redeployment remain limited. For many long-time workers, the timeline represents a sudden and difficult change.
PepsiCo’s Reason: Consolidation
In statements to local media, PepsiCo said the cuts are part of a broader consolidation strategy aimed at optimizing production and controlling costs. The company is reportedly shifting manufacturing operations to other facilities in the region as part of this restructuring effort. This follows similar moves across PepsiCo’s national network as beverage makers adapt to changing market conditions and consumer preferences.
Economic and Community Impact
The layoffs are expected to have ripple effects in the surrounding community. The Mack Avenue facility has long supported unionized, stable jobs in Detroit’s east side, and its partial closure raises concerns about local employment and spending. While 83 jobs may seem modest in a city of Detroit’s size, they represent a significant loss of middle-class manufacturing work in a neighborhood where those opportunities are increasingly rare.
How PepsiCo Plans to Support Workers
PepsiCo has included in the WARN email that it will offer severance packages, continued benefits, and career transition assistance to help affected employees adjust. Some workers may have opportunities to apply for positions at other regional facilities, but relocation and retraining could pose challenges. For many long-time employees, this support is welcome, but it can’t fully soften the blow of losing a decades-old job.
A Familiar Trend in the Beverage Industry
PepsiCo’s decision reflects a wider industry shift. Beverage and food companies are increasingly consolidating older facilities to cut costs and adapt to changing consumer habits. Starbucks’ recent closures, for example, included its iconic Roastery Reserve in Seattle’s Capitol Hill due to underperformance, underscoring the industry’s pivot toward efficiency over heritage or fancy immersive programs.
More broadly, the food and beverage manufacturing sector is reporting frequent layoffs and plant consolidations — over 1,300 employees affected across several facilities in recent months.
A Turning Point for Detroit
For Detroit, the Pepsi layoffs symbolize a transition in the city’s industrial landscape. While the plant will continue to operate in a reduced capacity, its role as a manufacturing site is ending. For workers, it’s the close of a chapter; for the company, a strategic pivot. And for the city, it’s a reminder that even historic institutions aren’t immune to the pressures reshaping American industry.
