Israeli company SodaStream is laying off 3% of its workforce, the company has confirmed. A source familiar with the matter told "Globes" that there will be 70-80 dismissals, some of them in the company's headquarters and some at SodaStream's production plant.
This will be the third wave of layoffs at SodaStream over the past 18 months after 300 employees lost their jobs in October 2021 and another 120 employees were laid off in December 2022.
SodaStream manufactures home carbonation devices for sparkling water and concentrates for making soda in various flavors. The company is owned by PepsiCo, which bought it for $3.2 billion in 2018, and headed by CEO Eyal Shohat. As part of the acquisition agreement, PepsiCo is committed to keeping SodaStream's factory in southern Israel for 15 years. Sodastream’s manufacturing is in Israel, apart from the gas refills for its machines, which are made in Europe.
The company currently has 3,800 employees worldwide, including 2,000 in Israel. SodaStream markets its products in 48 countries.
Weakening worldwide demand
SodaStream said, "In recent years, SodaStream has increased the size of its workforce in order to respond to the growth that has supported the company for a long time, and even more so during the Covid period. Since the decline of the Covid pandemic, and with the worsening of the global economic situation, there has been a worldwide weakening trend in demand for small household consumer products, such as SodaStream. Current production forecasts reflect this trend and a return to previously known demand levels.
"The current workforce reduction, amounting to approximately 3% of the company's total employees, is a continuation of previous cuts and part of the overall streamlining plan formed by the company due to the aforementioned changes."
SodaStream says that it will provide assistance to employees through redundancy grants as well as help in finding alternative jobs.
Published by Globes, Israel business news - en.globes.co.il - on May 4, 2023.
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