PepsiCo is permanently shutting its Frito-Lay snacks facility in southern California, reportedly putting more than 200 jobs on the line.
The plant in Rancho Cucamonga ended production last year but distribution and warehousing activities continued.
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In an update sent to Just Food, PepsiCo Foods US said: “We will be shifting these operations to a new distribution center in the local community to better serve our customers and consumers.
“We are committed to treating impacted employees with the utmost care, including providing pay and benefits continuation based on their years of service, along with transition assistance and career support.”
PepsiCo had not responded to Just Food’s request to confirm the number of roles affected at the time of writing.
However, a WARN notice filed by the company and cited by law firm Strauss Borrelli indicates that 248 staff at the facility will be impacted.
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By GlobalDataStrauss Borrelli said it is investigating whether Frito-Lay failed to provide at least 60 days’ notice before laying off employees, as is required under the WARN Act.
The Rancho Cucamonga shutdown adds to a series of facility closures by the US snacks and beverages group.
PepsiCo operates more than 30 Frito-Lay manufacturing plants across the US, producing brands including Cheetos, Doritos and Fritos.
In November, it announced the closure of a Frito-Lay plant in Orlando.
Earlier in February, it disclosed plans to shut a snacks plant in Liberty, New York, that manufactures the PopCorners brand, with more than 200 employees affected.
The company has also been cutting jobs outside the US.
In January, it outlined plans to reduce headcount in Spain, with local media reporting the company intended to file an Expediente de Regulación de Empleo (ERE), a formal redundancy mechanism, putting around 400 roles at risk.
Additionally, PepsiCo cut jobs at its operation in Cork, Ireland, in December, as part of efforts to “position the company for efficiency and growth”.
PepsiCo Foods North America (PFNA), which includes the Frito-Lay and Quaker brands, posted a 6% decrease in operating profit in the fourth quarter.
The company said the decline reflected higher costs, increased restructuring charges, and the absence of prior-year benefits, including a six-percentage-point impact from a Sabra remeasurement gain and a four-point impact from a Quaker recall insurance recovery.
Revenue at PFNA rose 1.5% on a reported basis during the quarter to $8.31bn. It was flat for the year at $27.53bn.
PepsiCo’s total consolidated net revenue for the quarter was $29.34bn, up 5.6% year on year. It increased 2.3% over the 12 months to $93.93bn.
Net income attributable to the group increased 66% in the quarter to $2.54bn but was down 14% over the year at $8.24bn.
