PepsiCo announced on Wednesday its decision to shut down four bottling plants across the United States, resulting in the layoff of almost 400 employees as part of its initiative to streamline operations.

The affected facilities include locations in Cincinnati, Chicago, Harrisburg, Pennsylvania, and Atlanta, with the number of impacted workers being 136, 131, 127, and fewer than 50 respectively. Notably, the Chicago facility will be the only one to completely cease operations, which was confirmed by the company earlier this week. However, PepsiCo stated that sales, delivery, and warehousing activities will still be operational at the remaining three sites.

Earlier this month, PepsiCo revised its sales outlook for the year due to a noticeable decline in consumer demand for its beverages and snacks in markets such as the U.S. and China. Following several years of price increases, this change has led to a 3% drop in North American beverage sales during both the second and third quarters of this year.

In terms of financial performance, the company reported a 5% decrease in net income, totaling $2.9 billion for the period from July to September. PepsiCo has reiterated its commitment to enhancing operational efficiency and productivity throughout its organization.

Headquartered in Purchase, New York, PepsiCo has assured its employees affected by the plant closures that they will receive compensation and benefits for 60 days, even though most of them will not be required to perform work during that period.