The Frito-Lay manufacturing facility in Rancho Cucamonga, California, known for producing Flamin' Hot Cheetos, has ceased operations, notifying employees on June 9, 2025. While the production line shut down, other operational components remain at the site. The closure reflects broader trends in the snack industry as consumer preferences evolve towards healthier options and new medication affects snack sales. Without a Worker Adjustment Notification filed, the laid-off workers reportedly received limited severance. PepsiCo’s outlook suggests continued volatility due to tariff policies and changing trade landscapes impacting snack production and sales.
The closure of the Frito-Lay facility in Rancho Cucamonga signifies a pivotal decline in snack production, influenced by changing consumer habits and health-focused policies.
Employees were notified about the plant's closure without prior Worker Adjustment and Relocation Notification, receiving only 10 weeks of pay as severance.
The decline in the snack industry is exacerbated by factors such as federal policies against highly processed foods and the rise of obesity drugs impacting consumption.
PepsiCo anticipates further challenges in adapting to tariff policies and fluctuating global trade dynamics, disrupting the traditional snack market.
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