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Pepsi to Shut Down Knoxville Bottling Facility, Laying Off Over a Hundred Workers
By Drooid · · How we work
Pepsi Announces Closure of Knoxville Bottling Plant
PepsiCo disclosed that its bottling plant at 2708 Federal Road in South Knoxville will be closed immediately. The company’s WARN notice indicates that the shutdown will affect the plant’s workforce, with one source reporting 112 employees and another citing 122 employees. Affected staff will receive continued pay, benefits, and transition resources through January 1. Local sales and delivery teams are slated to keep serving Knoxville-area customers.
Background and Financial Context
The plant closure follows a reported disappointing third-quarter performance for PepsiCo in North America in 2026. According to the Associated Press, the company intends to raise prices on certain products and reduce corporate costs as part of its response to the weak results. The Knoxville facility is one of several U.S. bottling sites owned by PepsiCo Beverages U.S.
Impact on Workers and Community
The announced layoffs will remove more than a hundred jobs from the local labor market. Employees will be provided with a paid notice period extending to the start of the new year, along with access to employment-transition resources. PepsiCo’s statement described the decision as “difficult” and expressed gratitude toward the workers and the broader community.
Official Company Response
PepsiCo’s public communication emphasized its commitment to supporting the affected employees during the transition, highlighting the continuation of pay and benefits through January 1. The company also noted that its local sales and delivery operations will remain active to ensure uninterrupted service to customers in the Knoxville region.
Conflicting Reports & Gaps
The two available reports differ on the exact number of workers impacted—one cites 112 employees, while the other lists 122. No additional details were provided regarding the criteria for the discrepancy or the timeline for the plant’s physical shutdown. Further clarification from PepsiCo or local authorities has not been reported.