PepsiCo has announced a further 87 job losses at one of its US Gatorade plants, as economic conditions deteriorate.

PepsiCo said yesterday (1 December) that it was cutting 87 hourly positions at its Gatorade plant in Pryor, Montana. The cuts follow a previously announced 22 job losses, and will leave 135 employees at the plant.

Earlier yesterday, PepsiCo confirmed to just-drinks that it has scrapped plans to build a new Gatorade facility in Oregon, due to lack of consumer demand for the sports drink.

Soft drinks firms large and small have been hit hard by the economic slowdown across North America.

Pryor facility manager Chris Weber said that 2008 has been a "challenging year", adding: "The productivity actions we've announced recently will provide the resources that will be reinvested into the business and ensure long term future growth."

He said: "We want to underscore our dedication to the Pryor community.  PepsiCo has invested over $180m for a state-of-the-art manufacturing facility, and we hope that shows the level of ongoing commitment we have to the community."

PepsiCo said in October that it planned to cut more than 3,000 jobs worldwide over the coming months.