It might be a new year, but for more than 1,200 PepsiCo employees who lost their jobs in 2025, the sting of losing their jobs is still raw. A widespread series of manufacturing shutdowns across three states led to significant job losses last year. Now, many PepsiCo employees are asking themselves, “Is my job next?”
California
One of the significant closures occurred in Rancho Cucamonga, California, where PepsiCo’s Frito-Lay facility — a manufacturing site in operation for over 50 years — halted production. This move alone accounted for roughly 432 positions eliminated as part of the broader cutbacks.
While distribution and warehouse operations remained active at the site, the loss of manufacturing jobs dealt a significant blow to the local workforce. It underscored the company’s pullback from high-cost production regions.
New York
Earlier in 2025, a PopCorners snack factory in Liberty, New York, was shut down, resulting in 287 layoffs when the entire workforce was let go following an official closure notice. The facility, which had been dedicated to producing the popular popcorn snack, was closed due to slowing growth in specific snack categories, prompting the company to consolidate operations elsewhere.
Florida
Another significant impact came from the Orlando, Florida, Frito-Lay plant closure, which saw about 500 workers lose their jobs when manufacturing and warehouse operations ceased. Some warehouse roles are scheduled to continue through mid-2026, after which they will be phased out.
Reasons for shutdowns
PepsiCo has cited slowing demand for traditional snack products, higher operating costs, and the need to streamline its manufacturing footprint as key reasons for these decisions. By consolidating operations into fewer facilities and optimizing for efficiency, the company aims to adapt to evolving consumer preferences and economic pressures.
Alarming trend?
These closures reflect broader industry challenges, as other major food manufacturers are reassessing their U.S. production capacity amid dampened consumer demand and sustained inflationary pressures. (Many manufacturers are fleeing California due to high operating costs, and some are relocating to states like Texas for that exact reason.)
PepsiCo reported better-than-expected third-quarter results for Q3 last year, with revenue growing about 2.6 % year-over-year. Hopefully, the efforts to streamline production and reduce operating costs are paying off and will result in fewer layoffs in 2026 (there aren’t any announcements of planned layoffs for 2026 yet).
If 2025 taught us anything, though, it’s that layoffs are often announced at the least expected times…
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