Biggest food and beverage layoffs hit California hard as industries restructure

California’s food and beverage industry has seen a wave of layoffs in recent months as manufacturers, distributors and beverage companies adjust to weaker consumer demand, rising operating costs and broader restructuring efforts.

While the state’s agricultural and food sectors remain among the nation’s largest employers, several high-profile companies have announced significant workforce reductions that could have ripple effects across local communities.

PepsiCo closes Frito-Lay warehouse

Earlier this year, PepsiCo confirmed it would permanently close its Frito-Lay distribution warehouse in Rancho Cucamonga. The facility was scheduled to cease operations on June 6, 2026, eliminating 248 logistics and warehouse jobs as the company shifts operations to a new regional distribution center. 

Del Monte shutters Modesto facility

Del Monte Foods announced the permanent closure of its Modesto processing plant in June 2026 following bankruptcy-related restructuring. The shutdown resulted in over 600 full-time layoffs and over 1,000 seasonal layoffs, making it one of California’s largest recent food manufacturing job losses. 

The company was able to sell many of its assets during bankruptcy proceedings, but the Modesto facility did not secure a buyer and ceased operations.

Additional layoffs across the state

Other California food companies have also reduced their workforces. Ferrara Candy filed a WARN notice affecting 69 employees earlier this year. Meanwhile, E. & J. Gallo Winery announced in early June 2026 that it would close its Lodi crush facility, impacting 20 workers, after previously announcing the closure of three Bay Area locations that affected nearly 100 employees.

Leprino Foods has also reduced its California workforce following the closure of one of its Kings County facilities, resulting in nearly 400 lost jobs.

Industry faces ongoing challenges

Industry analysts say food and beverage companies continue to navigate inflationary pressures, changing consumer spending habits, excess production capacity and operational consolidation. 

As companies focus on improving efficiency, additional restructuring across manufacturing, distribution and beverage operations could remain a trend throughout 2026, making California one of the states most affected by changes in the food and beverage industry.

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