PepsiCo plans to shutter a Frito-Lay distribution plant in California, the latest closure for the snacking giant as it aims to bring production in line with lagging demand.
The facility in Rancho Cucamonga is scheduled to cease operations on June 6, PepsiCo said in a WARN notice filed with the state of California. The move will result in 248 layoffs.
PepsiCo ended manufacturing operations out of the Rancho Cucamonga plant in 2025, but said at the time it would continue distribution and warehousing operations at the location.
The company said in a statement to Food Dive that it now intends to shift "these operations to a new distribution center in the local community to better serve our customers and consumers."
PepsiCo has closed several plants across its network during the last year, including snacking facilities in Florida and New York.
Frito-Lay’s portfolio has seen demand slip as inflation prompts consumers to cut back on how much they buy. The snacking giant has also been hit by shoppers turning away from processed foods and toward healthier offerings with recognizable ingredient lists.
During its most recent earnings call, PepsiCo said volume and organic revenue in its North American food division both fell 2% in its fiscal 2025 year.
PepsiCo has been moving aggressively to reposition its portfolio to spur growth at the company and make its products more attractive to consumers.
In December, the New York-based company said it was cutting prices and reducing the number of products it sells in response to a slowdown in consumer spending and pressure from an activist investor.
PepsiCo has also doubled down on launching healthier versions of some of its snacks. Last year, it announced Cheetos and Doritos without artificial dyes and committed to rolling out more snack options with additional protein, fiber and whole grains.
