Dive Brief:
- Frito-Lay, a subsidiary of beverage and snack giant PepsiCo, will close a facility in Liberty, New York this spring and lay off all 287 workers, according to a Worker Adjustment and Retraining Notification filing last week.
- Layoffs at the plant, which manufactures Frito-Lay’s PopCorners corn-based snacks, are expected to begin May 21 and run through June 6, according to the WARN notice. PepsiCo Foods U.S. said it would be working with the employees as well as local community officials to support the workers’ transition.
- This is the latest in a rash of closings across the food and beverage industry as suppliers look to increase efficiency and bring supply in line with demand.
Dive Insight:
Last year, PepsiCo shuttered a Quaker Oats factory in Danville, Illinois, and bottling plants in Cincinnati; Harrisburg, Pennsylvania; and Atlanta. Roughly 300 team members were let go during that process.
The Liberty plant was acquired by PepsiCo in 2019, as part of a deal to acquire BFY Foods, the original maker of PopCorners.
“This plant has played a vital role in producing our beloved PopCorners brand, but the pace of growth for this product line paired with broader industry pace of growth has made it difficult to sustain the site’s long-term viability,” PepsiCo Foods U.S. said in a statement. “We deeply appreciate the contributions of our Liberty employees, and this decision does not diminish the value of their hard work and dedication.”
Also last year, Campbell Soup closed one facility and reduced the size of another, resulting in more than 400 layoffs, while Del Monte closed two plants and laid off more than 200.
More central to the convenience store industry, food distributor Rich Products announced plans to lay off 139 employees and shutter its manufacturing facility in Santa Fe Springs, California. Energy and convenience company BP also announced plans in January to cut about 5% of its workforce as part of a previously disclosed plan to cut costs.
These may just be the tip of the iceberg, with nearly half of U.S. hiring managers surveyed by Resume Templates in January saying layoffs are likely at their companies.
