Jun 24, 2025
For 55 years, workers in and around Rancho Cucamonga, California, have reported to work at a local Frito-Lay factory — birthplace of Flamin’ Hot Cheetos and potato chips.
But now as KTLA reports, parent company PepsiCo is shutting down production there, displacing hundreds of Frito-Lay employees. Some teams will remain, including those who work in warehousing, distribution and transportation teams.
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"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."
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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.
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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.
Apply for unemployment benefits as soon as possible, and explore other financial assistance options. Keep in mind that any severance package you receive will affect your unemployment benefits and the point at which you receive them.
Investigate health-care coverage. Staying on your employer's group health plan is an option thanks to federal law (COBRA), but you’ll have to pay the premiums once your employer stops doing so. This is an expensive proposition.
Alternatively, you may look at broader insurance options where you may qualify for a reduction on your monthly premiums or low-cost coverage through Medicaid or the Children’s Health Insurance Program
Work on your budget and cut costs wherever you can so you can search for a new job — including the time it takes to network and update your resume — without racking up a lot of debt.
Hopefully, the same creativity that led to Rancho Cucamunga workers to develop Flamin’ Hot Cheetos will help them identify new work opportunities as the economic landscape shifts.
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
