Pepsi and Frito-Lay announce mass layoffs and plant closures in the U.S.– Here’s what it means
PepsiCo has announced the closure of its facility in Liberty, New York, resulting in 287 job losses by May 2025. The sudden shutdown has shocked employees and local officials, who were given no prior warning or opportunity.
PepsiCo’s decision to shut down its manufacturing facility in Sullivan County, New York, has left the small town of Liberty facing a major economic challenge. The closure, set for May 2025, will result in 287 job losses, significantly impacting local families and businesses.
The sudden shutdown has caught both employees and local officials off guard. Despite PepsiCo’s long presence in the area, the company did not seek financial assistance or incentives to remain in Liberty, leaving many unanswered questions about the decision.
What did PepsiCo say about the layoffs and plant closure in Liberty?
According to Times Union, the Liberty factory, which manufactures the popular PopCorners snacks for nearly 30 years, is struggling to remain viable in the long term.
In a statement, PepsiCo Foods USA says:
“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 company filed a Worker Adjustment and Retraining Notification (WARN) with the New York State Department of Labor, confirming that layoffs will begin on May 21, 2025.
Local officials, including Marc Baez, president of the Sullivan County Partnership for Economic Development, were caught off guard. According to Baez, PepsiCo never requested assistance or financial incentives to remain in Liberty. “Typically, when a company is struggling, they ask for help. That didn’t happen here,” he said.
PepsiCo has not yet disclosed what will happen to the facility after the shutdown. Photo: Xataxa.
Why is PepsiCo closing facilities across the U.S.?
This closure is part of a larger restructuring strategy. In October 2024, PepsiCo shut down four bottling plants across the country, affecting nearly 400 workers. The company cited shifting consumer demand and rising production costs as the primary reasons behind these decisions.
Despite reporting a slight decline in Q4 revenue to $27.78 billion, PepsiCo has seen an overall net revenue increase of 37% over the past five years, reaching nearly $92 billion.
Additionally, the company recently made headlines for reducing its Diversity, Equity, and Inclusion (DEI) programs, reflecting a broader trend of corporate realignment amid political pressure.