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Pepsi is laying off up to 100 workers in Philadelphia and blaming a 2-month-old soda tax (PEP)

PepsiCo is laying off 80 to 100 workers at distribution plans serving Philadelphia, blaming the city's soda tax.

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PepsiCo is laying off 80 to 100 workers at distribution plants serving Philadelphia. According to the company, a soda tax that is cutting the area's soda consumption is to blame.

The layoffs, which account for roughly 20% of Pepsi's 423 Philadelphia employees, will begin Wednesday and be spread out over the next few months, the .

"Unfortunately, after careful consideration of the economic realities created by the recently enacted beverage tax, we have been forced to give notice that we intend to eliminate 80-100 positions, including frontline and supervisory roles, in Philadelphia over the next few months, beginning today," Pepsi said in a statement to Business Insider.

Philadelphia's soda tax passed in June 2016 and went into effect in January of this year. The 1$91 million annually.

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As news of the layoffs broke on Wednesday, the city of Philadelphia fired back with evidence that the tax is also creating jobs. Philadelphia's soda tax has been used to fund expanded pre-K opportunities, creating about 250 jobs for teachers and support staff, the city said in a release sent out minutes after the news of layoffs broke.

Philadelphia Democrats have argued that layoffs are simply a case of companies trying to prevent other cities from passing soda taxes, by painting the taxes as dangerous for business.

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