Published: 27/03/2014
PepsiCo plans to close its Dallas-based snack production facility and warehouse operations in a bid to “eliminate redundancy and increase operating efficiencies”.

The site, which began production in 1984, manufactured Doritos, Cheetos and Chester’s branded products. Production will “transfer to other manufacturing sites across the US” and will cease in August.

The closing of Dallas baked snacks facility and the Dallas metro warehouse will eliminate positions in the Dallas Fort Worth area approximately 0.3% of the company’s US workforce. 

It is obvious that the closures recently taking place in USA are part of PepsiCo’s “productivity plan” that expected to result in cost savings of $1 billion a year, with about 40 percent coming from labor cuts. While more sites are closed and more workers are dismissed and punished through this so called “productivity plan”, CEO Indra Nooyi’s total compensation for 2013 came to USD 18.6 million – a 7% jump over the previous year’s package. It is very clear that the burden of cost savings will weigh only on the workers but never on the PepsiCo management.