PepsiCo, a leading food giant, has recently announced the closure of two Frito-Lay facilities in Orlando, Florida, resulting in the termination of 500 positions. The company made this decision in an effort to address a decline in snack sales in the region.
The closure includes a manufacturing plant and onsite warehouse that ceased operations on November 4, impacting 454 employees. Additionally, an off-site warehouse, employing 46 individuals, will end operations on May 9, 2026. PepsiCo stated that this was a difficult decision driven by business needs, and they are committed to providing support to the impacted employees through transition assistance, career support, and continued pay and benefits during this time.
The food manufacturing industry has been facing challenges in 2025, with companies like General Mills and Conagra Brands also closing plants and cutting jobs to align production with changing consumer spending habits and eating patterns. PepsiCo, in particular, has been significantly impacted by these shifts, with a 2% decrease in product volume and revenue in Frito-Lay’s North American food unit.
To adapt to the changing market trends, Frito-Lay has introduced healthier options by using olive or avocado oil in some products and eliminating artificial colors and flavors. The company has also launched smaller pack sizes and lower-priced items to cater to consumers looking for more affordable options.
Despite the challenges faced by the snack industry, PepsiCo remains committed to innovation and meeting the evolving demands of consumers. The company continues to explore new strategies to stay competitive in the market and provide high-quality snacks that resonate with today’s health-conscious consumers.
