PepsiCo recently announced the closure of two Frito-Lay facilities in Orlando, Florida, resulting in the termination of 500 positions. This decision comes as the food giant aims to address a decline in snack sales.
The closure includes a manufacturing plant and onsite warehouse, affecting 454 employees, which ceased operations on Nov. 4. Additionally, an off-site warehouse with 46 employees will be shutting down on May 9, 2026.
PepsiCo stated, “This was a difficult decision driven by business needs. We are committed to supporting impacted employees by providing transition assistance, career support, and continued pay and benefits.”
Food manufacturers such as General Mills and Conagra Brands have also been closing plants and reducing jobs in response to a slowdown in consumer spending and changing eating habits in 2025.
PepsiCo’s Frito-Lay unit has experienced a decrease in product volume and revenue, with brands like Fritos and Cheetos each dropping by 2% in North America. As a result, the company has closed snacking facilities in New York and California this year.
The demand for Frito-Lay’s products has declined due to inflation, leading consumers to opt for healthier options with natural ingredients over processed snacks.
To adapt to changing consumer preferences, Frito-Lay has introduced products made with olive or avocado oil, released versions of popular brands without artificial colors and flavors, and highlighted real ingredients like potatoes on its packaging. The company has also launched smaller pack sizes and affordable options to cater to budget-conscious shoppers.