Pepsi Announces Philly Layoffs, Cites Beverage Tax As Impetus

Pepsi announced it will lay off 80 to 100 people in the coming months and has cited the Philadelphia soda tax as the impetus for the layoffs.

Pepsi said sales have been cut by 4o percent since Philadelphia enacted the sugary drink tax in January. Pepsi said sales are up only 10 percent to 15 percent outside the city.

“Unfortunately, after careful consideration of the economic realities created by the recently enacted beverage tax, we have been forced to give notice that we intend to eliminate 80 to 100 positions, including frontline and supervisory roles, in Philadelphia over the next few months, beginning today,” Pepsi spokesman Dave DeCecco said. “Pepsi has called Philadelphia home for nearly 100 years. We are proud of our investments in the city and the good-paying jobs we've been able to provide to many residents for generations."

Mayor Jim Kenney's office recently announced a preliminary collection of $5.7 million from the tax in January.

The preliminary total of $5.7 million is more than double the forecast included in the City’s Quarterly City Manager's Report of $2.3 million, Kenney's office said.

Plants in North Philadelphia, South Philadelphia, and Wilmington, Delaware will be affected by the layoffs, Philly.com reports.

DeCecco said that if the tax is repealed the company will rehire workers for the laid off jobs. Overall, Pepsi has 423 employees in Philadelphia.

The tax plans to fund investments in pre-K and community schools as well as in Philadelphia parks, rec centers, and libraries, Kenney's office said.

Lauren Hitt, a spokeswoman for Kenney's office, told Philly.com Pepsi is "literally holding hostage the jobs of hardworking people in their battle to overturn the tax."

"This isn't something we take lightly or want to do, and we are committed to working with our employees and the union to treat impacted individuals with the care and dignity they deserve," DeCecco said.

Image via Mike Mozart, Flickr Commons