PepsiCo to announces Plant Shutdown and Layoffs

PepsiCo, one of the world’s largest snack and beverage companies, has announced the closure of its Frito-Lay plant in Liberty, New York, by the end of spring 2025, resulting in 287 job losses.

Key Details of the Closure

  • The plant has operated for nearly 30 years, producing PopCorners.
  • Layoffs will begin May 21 and continue through June 6, per the New York Department of Labor WARN notice.
  • Economic factors and slow product growth were cited as reasons for the plant’s shutdown.
  • PepsiCo has committed to working with local officials and impacted employees to support the transition.

Economic and Community Impact

Liberty, a town of approximately 10,000 people in the Catskill Mountains, will feel the effects of the mass layoffs. Local officials expressed concern over the plant’s closure, emphasizing the impact on families who have long relied on Frito-Lay as a primary employer.

Statements from Local Leaders

  • Sullivan County Legislature Chair Nadia Rajsz, Town Supervisor Frank DeMayo, and Village Mayor Joan Stoddard: “We are deeply concerned about PepsiCo’s decision. This facility has been an integral part of our community for decades.”
  • Sullivan County Legislator Louie Alvarez: “These families have lived, worked, and built their lives here. The impact will be tremendous.”

PepsiCo’s Broader Challenges

Financial Performance

PepsiCo’s latest Q4 2024 earnings report revealed a decline in North American revenue:

  • Frito-Lay North America revenue fell 2%.
  • Quaker Foods North America declined 2%.
  • PepsiCo Beverages remained flat YoY.
  • Overall net revenue declined by 0.2% compared to Q4 2023.

Despite this, net income rose 17% to $1.52 billion. Analysts attributed the revenue drop to shifting consumer preferences, economic pressures, and increased competition.

Strategic Shifts and Cost-Cutting Measures

PepsiCo has been taking cost-cutting steps to adjust to declining snack and beverage sales:

  • Closed four bottling plants in 2024, eliminating 400 jobs.
  • Shut down the Quaker Oats factory in Danville, Illinois, impacting 131 workers.
  • Acquired PopCorners in 2019 to expand its healthier snack portfolio, but sales growth hasn’t met expectations.

What’s Next?

PepsiCo says it has notified affected employees and is working to provide support services, including workforce transition assistance.

Local government agencies, including the Sullivan County Center for Workforce Development, will step in to help displaced workers find new employment opportunities within the region.

For updates on job placement resources and PepsiCo’s next steps, employees and community members can follow local government announcements and PepsiCo’s corporate communications.

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