PepsiCo’s Frito-Lay crisps manufacturing factory in Middletown, New York State is set to cut close to 30% of its workforce for “economic” reasons, according to a WARN filing published on 29 May. The layoffs are scheduled to begin on 30 August and end on 13 September. A total of 88 out of 305 employees at the Orange County plant will be affected, and it is worth noting that Frito-Lay employees are not represented by a union. In response to this development, we have reached out to both PepsiCo and Frito-Lay for comments.
Frito-Lay played a significant role in contributing close to 30% of the US snacks giant’s net revenue for 2023, totaling $91.4bn, which represented a 5.8% increase from the previous year. The PepsiCo subsidiary operates over 30 crisp manufacturing sites in the US and employs approximately 55,000 individuals across North America. Their diverse product portfolio includes 29 savory snacks brands, such as Lay’s potato crisps, Cheetos corn puffs, Doritos tortilla crisps, and Spitz sunflower seeds.
In other regions, PepsiCo has faced economic challenges, as demonstrated by job cuts at a snacks and crackers facility in Argentina. The company announced the loss of 36 roles at its General Pueyrredón facility in Buenos Aires due to the “challenging” economic situation in the country. Similarly, in the US, PepsiCo has been accused of implementing unfair labor practices by certain unions in Iowa, Illinois, and Indiana. These unions filed complaints with the National Labor Relations Board, citing “anti-working policies” that restricted employees from discussing pay and working hours.
