Cheverly PepsiCo Plant Layoffs: Worker Recalls Going Numb After Learning His Job Was Eliminated

James McPherson, a 42-year-old worker who marked 21 years at PepsiCo's Cheverly, Maryland, plant last month, was among more than 100 employees whose jobs were eliminated when the company shuttered most operations on 14 September. He recalled going numb after learning the news at the facility at 2611 Pepsi Place, telling the Washington Post he thought, 'I have to figure out what my life is now.'

The decision came a day after McPherson's work anniversary and ended manufacturing and warehouse activity at the plant, which has stood in Prince George's County for more than 60 years. PepsiCo's sales and delivery teams continue to operate there.

Cheverly PepsiCo Layoffs End a Familiar Routine

McPherson still wakes at 1 am as though he were preparing for work. He began in delivery before moving to transport and driving tractor-trailers between warehouses.

Anthony Wilson, 52, joined PepsiCo 10 days after McPherson. Both later worked in transport, where employees often remained for decades, and became close friends who coached a youth football team.

McPherson said the usual summer push known as '100 days of summer' was not mentioned this year. Wilson suspected the transport operation could close as work slowed.

Employees were told at a 9am meeting last month that fleet, transport, manufacturing and warehouse operations would be cancelled that day. A letter obtained by the Washington Post stated that laid-off employees had been placed on paid leave.

PepsiCo Explains Its Cheverly Layoffs Decision

PepsiCo Beverages U.S. called the decision difficult. 'This decision was not made lightly,' the company stated. 'As consumer demand, technology and our operating network continue to evolve, we must continue optimising and modernising our network to best serve customers and consumers.'

The company said 143 laid-off employees would receive pay and benefits through 13 November, with counselling and other resources. Eligible employees will receive severance, it stated.

William Davis, president of Teamsters Local 639, said he was shocked because the union had negotiated a new contract late last year that included a raise. He said the union usually receives 60 days' notice before a plant closure.

Kristoffer Inton, a Morningstar analyst, said PepsiCo may have faced a choice between retaining a 'very high-cost facility' or relying on newer nearby sites. PepsiCo did not comment on specific infrastructure issues.

Cheverly Faces The Impact Of PepsiCo Layoffs

The plant is the largest employer and taxpayer in the town of about 6,000 people, according to area officials. Dylan Galloway, Cheverly's town administrator, said officials received an email about the cuts around eight minutes before PepsiCo's employee meeting.

'I wish they would have reached out to us sooner,' Galloway said. He said earlier notice could have enabled the town and county to seek funding to improve the site.

A PepsiCo spokesperson said the company prioritised employees and union representatives, then contacted local officials that morning. Galloway said the plant generated more than $200,000 (£150,221) in annual taxable revenue and the town would prepare its next budget as though that revenue would not remain.

Employ Prince George's coordinated job fairs, including one with the Washington Metropolitan Transit Authority for PepsiCo workers, its president and chief executive LaTara T. Harris said. McPherson and Wilson attended, but Wilson said, 'I went from five weeks vacation and having a little seniority to having to start all over.'

McPherson has submitted more than 20 applications, chiefly for driving work, and has taken jobs with Wilson's lawn-care business. 'J.R., this is not your fault,' McPherson said his mother told him. 'That pushes me every day.'