ECONOMICS 101: Pepsi Laying Off Workers TWO MONTHS After City Enacts Soda Tax

Philadelphia enacted a special tax on soda that went into effect barely two months ago. The tax has already cut sales for fizzy drinks by up to 40 percent and now Pepsi is cutting jobs in the city.

Who could have guessed this would happen?

The Philadelphia Inquirer reports:

Pepsi to lay off 80 to 100, blames soda tax

With sales slumping because of the new Philadelphia sweetened beverage tax, Pepsi said Wednesday that it will lay off 80 to 100 workers at three distribution plants that serve the city.

The company, which employs 423 people in the city, sent out notices Wednesday and said the layoffs would be spread over the next few months. The layoffs come in response to the beverage tax, which has cut sales by 40 percent in the city, PepsiCo Inc. spokesman Dave DeCecco said.

“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 to 100 positions, including frontline and supervisory roles,” DeCecco said.

Fox Business provided this video report:

Apparently, the people behind the soda tax never studied basic economics. If they had, they would have seen this problem coming from a mile away.

Now people will lose their jobs so the city could make a few extra bucks.

That’s just sad.

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