PepsiCo to shutter 2 Frito-Lay facilities in Florida, lay off 500 workers

PepsiCo is closing a pair of Frito-Lay facilities in Orlando, Florida, and terminating 500 positions as the food giant looks to stem a downturn in snack sales, Food Dive reports.

The Sun Chips and Doritos maker said it shuttered a manufacturing plant and onsite warehouse on Nov. 4, impacting 454 people. An off-site warehouse, which employs 46 individuals, will end operations on May 9, 2026.

“This was a difficult decision,” PepsiCo said in a statement. “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.”

Food manufacturers, including General Mills and Conagra Brands, have been closing plants and cutting jobs in 2025 as they aim to get production in line with a slowdown in consumer spending and changing eating patterns.

Few companies have been impacted as much as PepsiCo.

So far in 2025, product volume and revenue in Frito-Lay’s North American food unit, which includes Fritos and Cheetos, have each dipped 2%. In response, PepsiCo has also closed snacking facilities this year in New York and California.

Frito-Lay’s portfolio has seen demand slip as inflation prompts consumers to pull back on how much they buy. At the same time, shoppers continue to gravitate toward healthier foods with recognizable ingredient lists and away from processed items.

Frito-Lay has responded by using olive or avocado oil in some products, launching versions of Cheetos and other popular brands without artificial colors and flavors and announcing plans to tout the ingredients like real potatoes on its packaging. The PepsiCo unit has also launched smaller pack sizes and lower-priced items to appeal to cash-strapped consumers.