Major food and beverage manufacturers are continuing to shrink their U.S. footprints as consumer demand softens and companies work to control costs. Recent closures and restructurings announced by PepsiCo, General Mills, and Molson Coors highlight how even industry leaders are reassessing production capacity and workforce needs.
PepsiCo
PepsiCo has been among the most active in reshaping its manufacturing and distribution network. Over the past year, the company has closed or announced closures at multiple Frito-Lay facilities across the U.S. as part of a broader operational realignment.
In Florida, a major Frito-Lay manufacturing plant in Orlando shut down in late 2025, impacting more than 400 workers. In California, production ended last year at the Rancho Cucamonga facility after more than five decades of operation. More recently, PepsiCo confirmed plans to close the distribution and warehousing operations at the same Rancho Cucamonga site, eliminating nearly 250 additional jobs.
The company has said the moves are intended to reduce excess capacity and improve efficiency as snack demand normalizes following pandemic-era growth.
General Mills
General Mills is also trimming its physical footprint as part of a multi-year supply chain restructuring initiative. In 2025, the company announced plans to close three manufacturing facilities in Missouri, including a pizza crust plant and two pet food plants.
The closures are aimed at consolidating production, lowering fixed costs, and improving margins across the company’s portfolio. General Mills has framed the decision as necessary to position the business for long-term competitiveness amid changing consumer preferences and inflation-driven cost pressures.
While the company has not disclosed full job impact figures publicly, the closures are expected to involve significant layoffs and restructuring expenses.
Molson Coors
Unlike PepsiCo and General Mills, Molson Coors’ recent actions have focused more on workforce reductions than plant shutdowns. In late 2025, the brewer announced plans to eliminate roughly 400 salaried positions, or about 9% of its U.S. workforce, as part of a restructuring of its Americas business unit.
The cuts are designed to streamline operations and redirect investment toward core brands, premium offerings, and non-alcoholic beverages as traditional beer consumption continues to face headwinds.
Industry outlook
Taken together, the moves signal continued pressure across the food and beverage industry. Analysts say companies are prioritizing efficiency, automation, and portfolio focus as they adapt to evolving consumer habits, higher operating costs, and a more competitive marketplace as we get deeper into 2026.
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