Overview

• On June 9, Frito-Lay ceased manufacturing Cheetos, Tostitos, Doritos and Funyuns at its Rancho Cucamonga plant, which opened in 1970 and introduced Flamin’ Hot Cheetos in 1991.
• PepsiCo confirmed that warehouse, distribution and transportation operations at the Southern California campus will continue despite the production shutdown.
• Laid-off employees received 10 weeks of severance pay, though Frito-Lay did not file the state’s 60-day WARN notice before notifying workers.
• Company executives attribute the pullback to falling snack sales linked to obesity drugs like Wegovy and Ozempic and to stricter federal food voucher restrictions.
• The shutdown is part of PepsiCo’s strategy to reduce costs as Frito-Lay sales volume dipped slightly and global trade uncertainties persist across its network of more than 30 plants.