News & Trending Shopping & Deals News

PepsiCo Quietly Closed 3 Frito-Lay Factories: Are More To Come?

Snack-lovers everywhere, beware.

By Amanda Machado , Edited by Calista Headrick

Updated Nov. 7, 2026

Add Us On Google

Food manufacturing facilities are shuttering, and as families crunch their budgets to find ways to save money on groceries, the snack food market is taking a hit to its bottom line.

People haven't suddenly stopped liking snacks, but as grocery budgets shrink, the snacks get left on the shelves, and it's causing major brand names to close down facilities.

PepsiCo is slowing production of Frito-Lay, and they've closed three factories since 2025. Learn what we know about the snack giant's future.

The latest closures

In 2025, manufacturing operations were put to a stop at the Frito-Lay manufacturing facility located in Rancho Cucamonga, California, though distribution and warehousing operations were planned to continue. But according to a WARN notice filed in February 2026, PepsiCo completely closed down the facility by June 6, 2026.

As of early 2026, Frito-Lay still had over 30 manufacturing plants throughout the U.S., but the historic location that birthed Flamin' Hot Cheetos will no longer be one of them.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

Have other Frito-Lay factories closed?

PepsiCo shut down manufacturing and on-site warehouse operations at its Orlando, Florida, Frito-Lay plant in November 2025. The plant made potato chips, Doritos, and Tostitos. A nearby off-site warehouse followed on May 9, 2026.

"This action was driven by business needs, and we are committed to treating every impacted employee with care – providing transition assistance, career support, and pay and benefits during this time," the company said in a statement.

In February 2025, PepsiCo announced it would close another Frito-Lay plant in Liberty, New York, which was making PopCorners, a popped corn chip snack. The plant shut down in June 2025. According to PepsiCo Foods, the pace of growth made it difficult to sustain the site's long-term viability.

How this impacts workers

The closing in Rancho Cucamonga resulted in 248 layoffs, and an additional 287 were laid off from the Liberty plant closing. The Orlando closures affected about 500 more workers, according to a WARN notice filed with the state of Florida. PepsiCo Foods released a statement citing a commitment to supporting the impacted former employees and promising severance pay and benefits.

How is Frito-Lay doing?

PepsiCo's North American snack business remains under pressure as shoppers pull back on spending. In its third-quarter 2026 earnings report, released Oct. 8, PepsiCo said Frito-Lay snack volumes were flat compared with the same period a year earlier, and North American beverage volumes fell 2%. Overall revenue rose 5.6%, driven largely by international demand. But PepsiCo lowered its full-year outlook for adjusted earnings per share growth to 2.5% to 3.5%, down from 5% to 7%, and said it plans to cut corporate costs in the coming months.

Will more facilities be affected?

It's unclear if more Frito-Lay facilities will be trimmed from the line; however, PepsiCo has been streamlining its production across several of its brands. In 2024, the company closed U.S. bottling plants in Cincinnati, Atlanta, and Harrisburg, Pennsylvania, so there could be more to come as Americans continue to tighten their belts and budgets against unaffordable groceries.

What the company has to say

"We are truly grateful for all the support over the last five decades from our Rancho Cucamonga manufacturing team as well as the local community," PepsiCo told USA Today in 2025. "We are committed to supporting those impacted through this transition and we are offering pay and benefits to impacted employees."

Don't Miss: 9 ways to tackle high grocery costs you won't hear about from your grocery store

Are other companies closing locations?

Several other companies have been impacted as consumers look for ways to stretch their budgets. Post Holdings closed two cereal manufacturing facilities in December 2025 in Ontario and Nevada, impacting about 300 workers.

In June 2025, Conagra Brands closed a plant in Michigan, which produced Marie Callender's frozen desserts. That impacted 85 employees.

Del Monte, known for producing fruits and vegetables, also shuttered a processing plant and two warehouses in Washington that impacted 51 workers and 448 seasonal employees.

J.M. Smucker also closed its Hostess manufacturing plant in Indianapolis in 2026, impacting 259 employees.

What this means for customers

Your favorite snack foods probably aren't going away just yet, as PepsiCo is aiming to optimize its supply chain to reduce operating costs rather than cutting products. However, products with low-performing sales will likely be first up on the budget chopping block if average Americans continue to struggle with rapidly rising costs of living.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Bottom line

Many companies are shrinking their operations as the economy continues to nose-dive. Families struggling to avoid wasting money are forced to cut items they would otherwise purchase, and unfortunately, mass layoffs contribute to the downward spiral and further reduce consumer spending on non-essentials.

More from FinanceBuzz:

Low spend threshold for its welcome offer
Cell phone protection benefit (subject to a $25 deductible)
Apply Now

Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
Earn a $100 cash rewards bonus after spending $500 in purchases in the first 3 months.
Earn unlimited 2% cash rewards on purchases.
0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.74%, 24.74%, or 28.74% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
$0 annual fee.
No categories to track or remember and cash rewards don’t expire as long as your account remains open.
Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.

5.0

Apply Now

on Wells Fargo's secure website

Read Card Review

Intro Offer

$100 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

Why we like it