On November 4, 2025, PepsiCo announced the latest phase of a major U.S. restructuring, closing multiple Frito-Lay manufacturing and warehousing facilities. This announcement marks the culmination of a broader cost-cutting initiative that began in late 2024, affecting approximately 1,850 workers across multiple beverage and snack production facilities nationwide.
The November 2025 Frito-Lay Closures
The November 4 announcement targets five Frito-Lay facilities in four states. By the end of 2026, plants in Florida, California, New York, and Michigan will cease manufacturing operations, directly affecting 1,319 employees:
- Orlando, Florida: Manufacturing plant (422 workers) and nearby warehouse facility (46 workers), closing May 2026​
- Rancho Cucamonga, California: Manufacturing facility closed June 2025 (480 workers)​
- Liberty, New York: Manufacturing facility closed May 2025 (287 workers)​
- Detroit, Michigan: Manufacturing, maintenance, and transport operations ceased September 2025 (84 workers)​
The Decision Behind the Shutdowns
PepsiCo’s North American Food division saw a 2% drop in snack volume during the third quarter of 2025, even as overall revenue rose by 2.6%. CEO Ramon Laguarta cited rising operational costs and declining sales of traditional snack products as key factors. The company’s stated goal is to “optimize our cost structure” and accelerate growth, signaling a strategic pivot in response to shifting market dynamics. The closures are part of a broader effort to streamline operations and adapt to evolving consumer habits.​
The Broader Context: 2024 Beverage Plant Closures
The 1,850 worker figure reflects PepsiCo’s comprehensive restructuring spanning 2024 and 2025. In October 2024, before announcing the Frito-Lay closures, PepsiCo shuttered four beverage bottling plants, affecting approximately 444 additional workers:
- Cincinnati, Ohio: 136 workers​
- Chicago, Illinois: 131 workers​
- Harrisburg, Pennsylvania: 127 workers​
- Atlanta, Georgia: Fewer than 50 workers​
Combined with the 2025 Frito-Lay closures (1,319 workers), these facility shutdowns affect approximately 1,763 workers across nine facilities, representing the comprehensive restructuring reflected in the approximately 1,850 figure.
Consumer Impact and Market Adjustments
The shutdowns will affect Frito-Lay’s production of products like Doritos, Lay’s, Cheetos, and PopCorners in the affected regions. Retailers and fast food chains are expected to adjust their supply arrangements in response to the reduced manufacturing capacity in these markets. The company has stated it will maintain warehousing and distribution operations at some closure sites to support continued product availability.​
Competitors and Market Shifts
The closures create an opportunity for competitors to capture market share, though industry consolidation and operational challenges are affecting multiple manufacturers. Health-conscious snack brands and private-label products are gaining traction as consumers increasingly opt for healthier alternatives to traditional processed snacks. This shift is further eroding PepsiCo’s dominance in the snack aisle, contributing to the company’s decision to streamline its manufacturing footprint.​
Broader Economic and Industry Effects
The closures reflect broader economic trends, including inflationary pressures and reduced consumer spending on discretionary items. The snack manufacturing sector’s contraction is part of a wider pattern affecting multiple industries, contributing to job losses and economic instability. Local and state officials in affected states are calling for economic support and retraining programs for displaced workers, urging federal intervention to help impacted communities.​
The restructuring also affects the broader supply ecosystem. Packaging suppliers and logistics providers will need to adjust to lower production volumes as manufacturing consolidates into fewer, larger facilities. PepsiCo has emphasized its commitment to supporting affected workers through transition assistance, severance packages, and continued benefits during closure periods.
Looking Ahead: Industry Transformation and Strategic Priorities
PepsiCo plans to invest in innovation and streamline its operations, aiming for a recovery in 2026. The company’s restructuring reflects its response to changing consumer preferences and economic challenges that will shape the future of the American snack industry. With approximately 1,850 workers affected across nine facilities nationwide, PepsiCo’s comprehensive restructuring represents a significant recalibration of U.S. snack and beverage manufacturing capacity. As the ripple effects of these closures spread, the sector faces a period of significant adjustment, with implications for workers, consumers, and industry structure.​
