Hundreds of employees said to be impacted after Frito-Lay shutters Southern California factory after 55 years — here’s what to do if you’ve been laid off

"We are truly grateful for all the support over the last five decades from our Rancho Cucamonga manufacturing team as well as the local community," a company statement read.

Many long-time employees who have been laid off will receive 10 weeks’ severance pay along with transitionary health benefits.

Here's why the factory is closing down, along with some tips on how laid-off workers can remain on firm financial footing

PepsiCo is closing multiple facilities amidst financial struggles

While PepsiCo did not provide specific details as to why it was winding down Frito-Lay production at Rancho Cucamunga, shifting consumer demand has impacted the company’s bottom line.

As CNN reports, many Americans are cutting back on salty and savory snacks because of cost.

In February, PepsiCo reported a 3% drop in fourth-quarter earnings from Frito-Lay brand snacks in North America.

In April, PepsiCo also lowered its 2025 earnings expectations in April, citing "elevated levels of volatility and uncertainty."

Meanwhile, it also shuttered a Frito-Lay production facility in Liberty, New York — affecting nearly 300 plant workers — and a Frito-Lay storage site in Aberdeen, Maryland, where 56 workersl lost their jobs.

What to do if you’re laid off

Try to negotiate a severance package. It isn't always available, but it's always worth asking for. Consider consulting with an employment lawyer to assist you with this, and to discuss other things you may want as part of such a package, including stock options, career transition support and health coverage.