Impact of PepsiCo Layoffs on Quaker Plant Expected to Be Mild

By Dave DeWitt, Reporter

Crews take down old Quaker Oats sign in prep for putting up new Pepsi sign on Wednesday, March. 16,2011, in Cedar Rapids. (Kenny Knutson/SourceMedia Group News)

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By Aaron Hepker

Story Created: Feb 9, 2012 at 1:10 PM CDT

Story Updated: Feb 9, 2012 at 6:18 PM CDT

CEDAR RAPIDS, Iowa - PepsiCo announced plans Thursday to reduce its global work force by 8,700 in order to reduce costs.

The company is the corporate parent of Quaker Foods, which operates the nation’s largest cereal mill in Cedar Rapids.

“To help accelerate business growth and maximize growth.
Company spokeswoman Candace Mueller Medina said “the impact on plant locations is minimal.”

Medina could offer no specific layoff numbers.

“These decisions are never easy, and we’re committed to treating our people with the greatest consideration and assistance to ensure a smooth transition,” Medina said, “including providing severance packages that include transition benefits, job placement assistance and career counseling.”

The union representing Cedar Rapids plant production workers has received no communication from the company regarding layoffs, according to Al Hartl, president of Retail Wholesale and Department Store Workers Local 110.

The layoffs will make up 3 percent of the soft drink and food company’s entire work force.

Rival Coca-Cola announced a cost-cutting initiative earlier in the week, however it did not involve personnel reductions.

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