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PepsiCo is closing a pair of Frito-Lay facilities in Orlando, Florida, cutting 500 jobs as the grocery giant looks to ease a slump in snack sales.
The maker of Sun Chips and Doritos said it closed an on-site manufacturing plant and warehouse on Nov. 4, affecting 454 people. An off-site warehouse, which employs 46 people, will cease operations on May 9, 2026.
“This was a difficult decision,” Pepsi said in a statement. “This action was taken based on business needs, and we are committed to treating each affected employee with care – providing transition assistance, job support, and salary and benefits during this time.”
Food manufacturers, incl General Mills and Konagra brandswill close factories and cut jobs in 2025 as they aim to bring production in line with falling consumer spending and changing dietary patterns.
Few companies have been affected as much as PepsiCo.
So far in 2025, the product volume and revenue of Frito-Lay’s food unit in North America, which includes Fritos and Cheetos, Each decreased by 2%. In response, PepsiCo has also closed snack facilities this year New York and CaliforniaAs well as a manufacturing plant in Michigan.
Frito-Lay’s portfolio has seen declining demand as inflation causes consumers to pull back on their purchases. At the same time, shoppers continue to gravitate toward healthier foods with recognizable ingredient lists and away from processed items.
Frito-Lay has reacted by using olive or avocado oil in some products Versions of Cheetos and other popular brands No artificial colors and flavors and announcing plans to advertise ingredients like real potatoes on its packaging. The PepsiCo unit has also introduced smaller packages and lower-priced items to attract cash-strapped customers.
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