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KNOXVILLE, TN · EAST TENNESSEE EDITION · TUESDAY, OCTOBER 20, 2026
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Pepsi to Close Bottling Plant in Knoxville, Cutting 112 Jobs

Published October 20, 2026 at 6:28 am | By Benito Bowman, Staff Reporter

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KNOXVILLE, Tenn. — Pepsi plans to shut down its bottling plant in Knoxville, a move that will cost 112 people their jobs, according to a layoff notice the company filed under the federal WARN Act.

The plant sits at 2708 Federal Rd., on the South Knoxville side of the Tennessee River. That part of the city covers the 37920 ZIP code and links to downtown by way of the Gay Street, Henley Street and James White Parkway bridges.

The shutdown hits a district with deep industrial roots. South Knoxville grew up along the river as a blend of streetcar-era neighborhoods, Island Home among them, and industrial and rail sites. Over the past two decades it has been remade by the expansion of Ijams Nature Center and the 2016 opening of Suttree Landing Park, which helped give the area its SoKno nickname. Chapman Highway, U.S. 441, is the main road through the district, running from downtown south toward Sevier County.

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Workers learned of the closing on Monday, Oct. 19. The company sent its notice letter the same day to the state of Tennessee and to Knoxville Mayor Indya Kincannon.

Employees will not be cut off right away. Pepsi said it expects to cover a paid notice period that runs through Jan. 1, and that during that time workers keep receiving their pay and benefits along with help finding new work.

In a statement posted online, the company called the decision a difficult one and thanked its workers and the community for their support. The notice did not lay out what will happen to the Federal Road property after the plant closes.

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Section: More Knoxville TN business news

Knoxville business profiles

Filed under: Knoxville TN Business News

What's Happening
What is closing?
The Pepsi bottling plant at 2708 Federal Rd. in South Knoxville.
How many jobs?
112, according to the company layoff notice.
What do workers get?
Pay, benefits and job help through a notice period ending Jan. 1.
Benito Bowman
HEREKnoxville · BUSINESS

Benito is a staff reporter for HERE Knoxville covering local news, community stories, and developments across Knox County. Benito is committed to accurate, community-first journalism.

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