US: Why PepsiCo Foods is laying off 288 workers, closing major plant

PepsiCo Foods USA, the parent company of Pepsi and Frito Lay, is set to lay off 288 employees and shut down a major production plant in Liberty, New York.

The company attributes the closure to challenges in sustaining long-term operations due to the growth pace of its PopCorners product line and broader industry trends.

In a statement, PepsiCo Foods USA explained: “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 … We have notified our workforce and are working closely with our employees and local community officials to provide a supportive transition.”

The plant’s shutdown is expected to have a significant impact on Liberty, a small town where many residents rely on jobs at the facility. Town supervisor Frank DeMayo has assured workers that efforts are underway to find another business to take over the site and rehire affected employees.

“Hopefully they sell it to another business that maybe could turn around and hire these folks. We don’t know yet. But the Partnership for Economic Development will engage heavily in that,” DeMayo stated.

With layoffs set to take effect in May, local officials are working against the clock to attract a new company willing to utilise the facility and retain the workforce.