Pepsi Claims They Are Laying Off Workers Due To Soda Tax

Pepsi is laying off up to 100 workers in Philadelphia and blaming a 2-month-old soda tax – Business Insider

PepsiCo is laying off 80 to 100 workers at distribution plants serving Philadelphia. According to the company, a soda tax that is cutting the area’s soda consumption is to blame.

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“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 80-100 positions, including frontline and supervisory roles, in Philadelphia over the next few months, beginning today,” Pepsi said in a statement to Business Insider.

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Philadelphia Democrats have argued that layoffs are simply a case of companies trying to prevent other cities from passing soda taxes, by painting the taxes as dangerous for business.

…that’s because taxes can affect businesses negatively. In this case, it’s 20% of the facility workforce.