March 1 PepsiCo Inc said on Wednesday it
would cut 80 to 100 jobs in Philadelphia as the city's new
sugar-sweetened beverage tax hurts demand for its products.
Philadelphia imposed a tax of 1.5 cent per ounce on sugary
and diet drinks to combat rising obesity and diabetes in the
city. The tax became effective on Jan. 1.
PepsiCo's beverage sales fell 40 percent in the city because
of the tax, company spokesman Dave DeCecco told Reuters in an
The cuts will take place over the next few months and will
include frontline and supervisory jobs, the company said.
"If the tax is struck down or repealed, we plan to bring
people back to work," DeCecco said.
PepsiCo, which also makes Frito Lays snacks and Doritos
chips, has 423 employees at three locations in the city.
(Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by