EMCC European Monitoring Centre on Change

PepsiCo

Company/Organisation:
PepsiCo

Geographic Location

Country: Spain
Location of affected unit(s): Burgos, Vitoria, Murcia, Barcelona and Madrid

Company

Sector: Manufacturing
Manufacture of food products, beverages and tobacco products
11.07 - Manufacture of soft drinks; production of mineral waters and other bottled waters
Number Employed: 2600
Group: PepsiCo Group

Employment Effects

Announcement Date: 11-11-2022
Planned Job Reductions min: 530
Planned Job Reductions max: 550
Type of Restructuring: Internal restructuring
Employment Effect Start: 11-11-2022
Direct Dismissals: 530

Additional Information

The US multinational PepsiCo, manufacturer, marketer, and distributor of beverages and snacks, has launched job cuts of 530-550 employees in Spain (this is 21% of its total workforce).  The company's management has explained to the unions that the impact on the workforce will affect all areas of the company, including sales (with 250-260 workers affected), the production plants (40 workers at the Burgos plant, 15 at the Vitoria plant and 10 at the Murcia plant) and the office area (120 jobs affected, with the Barcelona plant suffering the greatest staff cuts, followed by Madrid and Vitoria). 

CC OO trade union details that the company has presented this workforce adjustment, leading to a collective dismissals procedure (ERE in Spanish) for "organisational and productive reasons", and seeks to reduce its portfolio by 30% to centralise functions, eliminate organisational layers and implement new technologies for the digitisation of processes. 

The company and unions have set up a dialogue table this week to, according to a statement issued by PepsiCo, "guarantee a process with the will to reach an agreement". The unions have reiterated to the company's management that "they do not believe that the context proposed is susceptible to traumatic measures", so they have requested in writing all the necessary information in order to minimise the impact that this process may have. PepsiCo has clarified that it will not close any factory or office.

Last year the company announced the opening of a global digital hub in Barcelona which would employ 400 people by 2024 (Pepsico-2021-ES).
 

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