PepsiCo has announced the immediate closure of its Knoxville manufacturing facility located at 2708 Federal Road, impacting 122 workers.

According to a WARN notice filed by the company, affected employees were notified on Monday. PepsiCo stated that staff will continue to receive full pay and benefits through January 1, alongside access to career transition resources.

While the production plant is shutting down, local sales and delivery operations will remain active to serve customers in the Knoxville area.

The closure comes amid broader corporate cost-cutting measures following a disappointing third quarter for PepsiCo in North America, with plans from the parent company—which also produces brands like Lay’s, Doritos, and Quaker Oats—to raise select product prices and reduce corporate expenses.