Automation Results in Hundreds Losing Jobs at Moha Manufacturing Plant

Addis Ababa, Ethiopia

Moha Soft Drinks, the bottler for PepsiCo products in Ethiopia, has laid off around 100 employees, with 300 more facing potential job cuts at one of its manufacturing plants in Addis Ababa, following the introduction of automation machines, sources told Shega.

The affected employees, who began receiving termination letters a month ago, were previously tasked with manually handling bottles from feeding them into machine plants to loading bottles into cases. However, the newly installed bottle caser and uncaser machines now automate these processes, resulting in a reduction in the workforce.

Bottle casers and uncasers are commonly used in the beverage industry, especially in the bottling and packaging of soft drinks, beer, and wine. A bottle caser packs bottles into cases or cartons for shipment, while a bottle uncaser removes bottles from cases or cartons upon arrival at a bottling plant or distribution center.

According to an anonymous source working at the Kera Manufacturing Plant where the layoffs occurred, employees were handling four bottles at a time, whereas the new machines can handle 72 bottles (three cases) simultaneously.

One such machine was installed two months ago, with additional machines awaiting installation. With approximately 900 employees working in the production line at the Kera plant, it is estimated that the new machines will eliminate 400 jobs, shega learnt from its sources.

Shega’s sources have added that around 100 employees have already received termination letters.

Tessema Belay, name changed to protect the former employees pending employee benefits questions, had worked at the Moha Kera manufacturing plant for decades. He confirmed his layoff, stating, “I have already been let go and am no longer employed at the plant.” He added that around 100 others were also laid off with him.

Another source from the production team revealed that similar machines had been installed at Moha’s other two manufacturing plants in the capital, located around Summit and Tekliye, years ago.

The former and current employees noted that Moha had delayed installing the machines at this compound due to a promise made by the company’s majority shareholder, billionaire Sheik Mohammed Al Amoudi, not to replace staff with machines, given that the plant is the oldest and many staff have served there for decades.

Moha is the bottler of popular soft drink brands like Pepsi, Mirinda, and 7UP, as well as Kool carbonated mineral water. The company, which is a member of MIDROC Ethiopia, was established in May 1996. It operates three plants in Addis Ababa, and five more in other parts of the country, including Hawassa and Mekele.

In recent times, however, it has been facing challenges. In November of the previous year, The Reporter stated that Moha had to halt operations at all production facilities due to a severe shortage of foreign currency, severely impacting operations.

Following this tumultuous period, new management was appointed to address lingering challenges, with the decision to install automated machines being part of their reform plan, the sources claim. 

Shega reached out to Seid Mohammed, Director of Communication at MIDROC Ethiopia, several times but did not receive any response.

The East African Bottling Company, the largest bottler of Coca-Cola products in Ethiopia, produces its products almost entirely without human contact at its main manufacturing plant located in Sebeta, which was constructed with an investment of over $100 million in 2022.