PepsiCo has officially announced plans to close its Frito-Lay plant in Orlando. This closure marks yet another in a series of facility shutdowns by the prominent US snacks and beverage giant.
In a statement PepsiCo said: “PepsiCo Foods US announced the shutdown of manufacturing and warehouse operations at our Orlando plant. This action was driven by business needs, and we are committed to treating every impacted employee with care—providing transition assistance, career support, and pay and benefits during this time.”
While PepsiCo has not specified the exact number of jobs affected by the Orlando closure, a WARN notice from the Florida Department of Commerce indicates that 454 employees at the facility will be impacted. Furthermore, an additional 46 personnel will be laid off from a nearby PepsiCo office.
According to Orlando News, the manufacturing site is slated to close by May of next year.
In the statement, PepsiCo emphasized, “This was a difficult decision, as we know how much this site and its people mean to the Orlando community.”
Earlier this year, PepsiCo commenced the closure of its Frito-Lay processing plant in Rancho Cucamonga, California, after five decades of operation, without detailing the expected job losses.
In February, the company also announced the closure of a snacks plant in New York that produced the PopCorners brand, which will affect 200 employees.
Moreover, last year saw the shutdown of its Frito-Lay factory in Middletown, New York, attributed to “economic reasons.”
Meanwhile, PepsiCo CEO Ramon Laguarta has asserted that the company is working with “a sense of urgency” to reshape its portfolio and reduce costs amid scrutiny from activist investor Elliott Investment Management.
In September, Elliott urged PepsiCo to review the structure of its North American businesses following a period of “poor financial results.”
At that time, Elliott, which manages funds holding a $4 billion stake in PepsiCo, described the company as being at “a critical inflection point.”
