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PepsiCo will close a pair of Frito-Lay facilities in Orlando, Fla., and lay off 500 jobs to stem a decline in snack sales.
The maker of Sun Chips and Doritos said it was closing its manufacturing plant and on-site warehouse on November 4, affecting 454 people. The off-site warehouse, which employs 46 staff, will cease operations on May 9, 2026.
“This was a difficult decision,” PepsiCo said in a statement. “This action has been made in response to business needs and we are committed to treating all affected employees with care, providing transition support, career support, pay and benefits during this period.”
Food manufacturers including: general mills and conagra brandWe have been closing factories and reducing employees in 2025 with the goal of producing in line with slowing consumer spending and changing eating patterns.
Few companies have been as affected as PepsiCo.
As of 2025, the product volume and sales of Frito-Lay’s North American food division, which includes Fritos and Cheetos, are: each down 2%. In response, PepsiCo also closed its snack facilities this year. New York and California.
Frito-Lay’s portfolio has seen demand decline as inflation forces consumers to spend less. At the same time, shoppers are avoiding processed foods in favor of healthy foods with prominent ingredient lists.
Frito-Lay responded by using olive oil or avocado oil in some of its products. Versions from Cheetos and other popular brands They announced plans to contain ingredients like real potatoes in their packaging, without adding artificial colors or flavors. The PepsiCo division also introduced smaller pack sizes and cheaper items to appeal to cash-strapped consumers.
