PepsiCo has closed its bottling plant in Knoxville, Tennessee, affecting 112 workers. The decision follows the company’s recent shutdown of manufacturing and warehouse operations at a Maryland beverage plant.
The company announced the Knoxville closure on October 19 and described it as immediate. Tennessee’s WARN document lists the affected facility at 2708 Federal Road in South Knoxville and says the closure will affect 112 employees.
Workers remain on paid notice
Although plant operations closed immediately, PepsiCo said affected employees will receive a paid notice period through January 1, 2027. That package includes continued pay and benefits, along with access to employment and transition resources.
The state document describes January 1 as the facility’s closing date. That distinction means production has stopped, while the affected workers remain on the payroll during the notice period.
PepsiCo told local station WVLT that it is actively working to place employees from the plant at other nearby company locations. Workers with retirement benefits will retain them, according to the station.
In its closure announcement, PepsiCo thanked employees and the Knoxville community but did not provide a specific reason for shutting the facility.
Pepsi deliveries will continue
The closure does not end all PepsiCo activity in the Knoxville area. The company said local sales and delivery teams will continue serving customers, even though the bottling operation has stopped.
That arrangement resembles the company’s September changes in Cheverly, Maryland, where manufacturing and warehouse work ended while sales and delivery functions remained. The Tennessee closure is separate and affects the Knoxville workforce identified in the state filing.
The plant sits near other South Knoxville businesses. A nearby gas-station owner told WVLT that Pepsi employees had been regular customers, sometimes visiting several times a day, and worried that their departure would also be felt by surrounding businesses.
The full local impact is still developing
The Knoxville Chamber of Commerce said Knox County has received three WARN notices this year, a level consistent with the previous two years. Chamber officials noted that regional growth and individual layoffs can occur at the same time, while emphasizing the effect on workers and families.
For the 112 people tied to the bottling plant, the next several weeks will be a transition period rather than an immediate end to pay and benefits. The production shutdown has already happened, but the employment notice period continues into the new year.
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