PepsiCo’s longstanding manufacturing and warehouse operations at its Cheverly, Maryland plant were largely shuttered on September 14, resulting in the layoffs of 143 employees. The facility, located at 2611 Pepsi Place, had been a major presence in the community for more than 60 years, serving as the largest employer and taxpayer in the town of roughly 6,000 residents in Prince George’s County.

The decision to close most operations came shortly after employee James McPherson marked his 21st anniversary with the company. McPherson, who had worked as a driver and in transport logistics, described the closure as a sudden and disorienting change. “I have to figure out what my life is now,” he said. McPherson and many colleagues had come to see the Cheverly plant as a place for career growth, with long tenures common among workers who transported sodas across the region. The layoffs came without prior public warning, leaving local officials surprised. Cheverly town administrator Dylan Galloway noted that the town received notification only minutes before employees were informed, limiting the community’s ability to plan or respond proactively.

PepsiCo stated that the closure was a difficult decision driven by evolving consumer demand, technological advancements, and efforts to optimize and modernize its operating network. The company emphasized that while manufacturing, fleet, transport, and warehouse functions ceased, sales and delivery teams would continue operations at the site. A spokesperson said the company prioritized informing employees and union representatives first and has since maintained communication with local officials to support the community. Laid-off workers would receive pay and benefits through November 13 and access to counseling services, with severance packages negotiated through the union representing the employees.

William Davis, president of Teamsters Local 639, expressed shock at the abruptness of the cuts, remarking that the union typically expects a 60-day notice prior to such layoffs. The union had recently negotiated a new contract that included wage increases, heightening the impact of the layoffs.

Industry analysts highlighted broader economic and market factors influencing the closure. The Cheverly facility, over half a century old, was considered a high-cost operation compared to newer sites. Maintaining aging infrastructure can be costly and challenging, leading companies like PepsiCo to shift toward refranchising bottling operations and relying on more modern plants. Economic pressures, including stagnant growth in North America and reduced consumption of sugary beverages amid health-conscious trends, have further strained operations.

Local officials and community advocates have mobilized to assist displaced workers. Prince George’s County has moved into a “rapid response” phase, coordinating job fairs and partnering with regional employers, including the Washington Metropolitan Area Transit Authority, to identify new employment opportunities. Coca-Cola has also expressed interest in supporting former PepsiCo employees. While some laid-off workers are optimistic about new prospects, others acknowledge the difficulties of starting over, particularly for older employees accustomed to specific roles within the company.

For workers like McPherson and Anthony Wilson, whose careers were intertwined with the plant, the closure marks the end of an era. Both have engaged in grassroots support efforts and have begun exploring alternative employment paths while reflecting on their time at the facility. Local leaders recognize the plant’s closure as a significant loss for Cheverly’s economy and identity, highlighting the challenge ahead in adapting to this new reality.