CALIFORNIA – PepsiCo notified the California Employment Development Department (EDD) that it is permanently closing its Frito-Lay warehouse and laying off 248 employees effective June 6.
Although manufacturing ended last year, warehouse and distribution operations continued at the Rancho Cucamonga facility.
The company said it now intends to shift “these operations to a new distribution center in the local community to better serve our customers and consumers.”
The move follows similar consolidation efforts in other states.
A Frito-Lay facility in Liberty, New York, closed in spring 2025, resulting in approximately 287 layoffs. Additional closures in Florida led to about 500 more job cuts.
Consumers are becoming more selective
During its most recent earnings call, PepsiCo reported that both volume and organic revenue in its North America Foods division declined 2% for fiscal year 2025.
Executives also acknowledged growing price sensitivity among consumers, with PepsiCo CEO Ramon Laguarta describing affordability as “the biggest friction” for low- and middle-income consumers.
Food economist and professor at Michigan State University, David Ortega, said several forces are reshaping consumer snacking behavior.
“Consumers aren’t just snacking less ‒ they’re becoming more selective, favoring snacks with stronger nutritional profiles,” he said. “The adoption of GLP-1 medications like Ozempic and Wegovy is accelerating these changes, with appetite suppression leading to lower overall grocery spending and a sharper decline in purchases of highly processed and unhealthy snacks.”
Last year, PepsiCo said it would launch Cheetos and Doritos without artificial dyes and expand its offerings to include snacks with added protein, fiber and whole grains.
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