The Pepsi Bottling Group plant at 2708 Federal Road is closing, with 112 jobs ending Jan. 1, the state's WARN filing shows. Workers are paid until then.

PepsiCo is closing its bottling plant on Federal Road in Knoxville, and 112 people will lose their jobs.

The company’s beverage arm announced the closure on Monday, Oct. 19. It said it would “immediately close” the plant and called the move a “difficult decision.” Workers will keep their pay and benefits through Jan. 1 and will get help finding new jobs, the company said.

What the state filing shows

PepsiCo told the Tennessee Department of Labor and Workforce Development the same day. The department posted the notice on Tuesday, Oct. 20, on its list of 2026 WARN notices.

The state’s memo on the filing, WARN No. 202600012, records:

  • Employer: Pepsi Bottling Group
  • Location: 2708 Federal Road, Knoxville, ZIP code 37914
  • Workers affected: 112
  • Type: permanent closure
  • Effective: Jan. 1, 2027
  • Union: none; the workers are not covered by a collective bargaining agreement

A WARN notice is the advance warning that federal law requires before a plant closing or a mass layoff. Employers generally have to give at least 60 days’ notice, the department says. Jan. 1 is 74 days after PepsiCo notified the state.

What stays open

PepsiCo said its local sales and delivery teams will keep serving customers in the Knoxville area. It did not say where the drinks now made on Federal Road will be bottled.

Help for the workers

The state has asked the East Tennessee Human Resources Agency’s rapid response team to work with the company and the workers, its memo says. The East Local Workforce Development Board will oversee the follow-up services for laid-off workers.

Questions about the filing go to the department’s Dislocated Worker Unit at 615-253-6355.

What it means for you

  • If you work at the plant: your pay and benefits run through Jan. 1, PepsiCo said. The East Tennessee Human Resources Agency’s rapid response team has been told to coordinate services for you.
  • If you live nearby: the plant’s closing removes a large employer from Federal Road. The company has not said what will happen to the building.

Knox County’s jobless rate was 3.2% in August, before this closure. Our August unemployment story has the detail.