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 Wednesday 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 percent 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 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 $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.
The Associated Press contributed to this article