PepsiCo To Halt Frito-Lay Production In Rancho Cucamonga After 50 Years: Report

PepsiCo, Inc. PEP reportedly confirmed plans to discontinue manufacturing operations at its Frito-Lay facility in Rancho Cucamonga in Southern California on Wednesday, bringing an end to more than 50 years of production at the site.

The decision was shared in a company statement emailed to USA TODAY on June 11, and while the factory's production lines will be halted, the site's warehousing, distribution, transportation, and fleet services will remain operational, USA TODAY reports.

Frito-Lay North America's operating profit in the last reported quarter (Q4) dropped 11% due to higher restructuring costs, lower organic volume, and increased strategic initiative expenses.

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In the statement, PepsiCo Foods U.S. expressed gratitude for the local workforce and community support over five decades.

It also emphasized its commitment to aiding impacted employees during the transition, including compensation and benefits packages, the report reads. The exact number of employees affected has not been released.

As of June 11, the Rancho Cucamonga facility does not appear in California's Worker Adjustment and Retraining Notification (WARN) database, which mandates advance notice for mass layoffs or plant closures.

Local reports suggest some workers were terminated without being offered roles in other departments.

The plant has drawn public attention in the past as the former workplace of Richard Montañez, who claimed to have invented Flamin' Hot Cheetos. However, both Frito-Lay and PepsiCo have publicly challenged that narrative.

Frito-Lay, a division of PepsiCo, operates more than 30 manufacturing plants across the U.S., many of which are equipped with advanced processing systems.

Meanwhile, the beverage giant said it will issue its second-quarter 2025 (ending June 14) financial results and other related information on Thursday, July 17, 2025.

The analyst consensus estimate for earnings per share stands at $2.05, with revenues estimated at $22.28 billion.

Price Action: PEP shares are trading higher by 0.08% to $130.00 at last check Thursday.

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