Pepsi to layoff 80 to
100 workers, citing Philadelphia tax
Pepsi says
Slumping sales from Philadelphia's new sweetened-beverage tax
are prompting layoffs of 80 to 100 workers at three distribution plants
that serve the city.
Pepsi to layoff 80 to 100 workers, citing Philadelphia tax
Pepsi says slumping sales from Philadelphia's new sweetened-beverage tax
are prompting layoffs of 80 to 100 workers at three distribution plants
that serve the city.
The company sent out notices today saying layoffs will occur at plants
in north and south Philadelphia and in Wilmington, Delaware, The
Philadelphia Inquirer reported.
Dave DeCecco, spokesman for the Purchase, New York-based company that
employs 423 people in the city, said the tax has cut sales by 40 per
cent there.
"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," DeCecco said.
The city blasted the news, with spokeswoman Lauren Hitt saying "the soda
industry sunk to a new low today."
"They are literally holding hostage
the jobs of hardworking people in their battle to overturn the tax," she
said, adding that the company reported nearly USD 35 billion in gross
income and USD 6 billion in profit last year." Hitt also said the
company and the rest of the beverage industry had spent hundreds of
thousands of dollars lobbying against the tax.
"The idea that they can afford to do that but 'must lay off workers'
should make every Philadelphian very skeptical of whether these layoffs
are actually due to the tax," she said.
The 1.5-cent-per-ouce tax on sweetened and diet beverages is imposed at
the distributor level. If fully passed onto the consumer, it amounts to
USD 1.44 on a six-pack of 16-ounce bottles.
Some Philadelphia supermarkets and beverage distributors have also said
they're gearing up for layoffs. Philadelphia Mayor Jim Kenney said the
tax, which was aimed at paying for nearly 2,000 pre-kindergarten slots
and other programs, raised USD 5.7 million in January, more than double
what city officials had projected
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