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Frito-Lay Shuts Production at Rancho Cucamonga Plant, Birthplace of Flamin’ Hot Cheetos

The abrupt move cuts hundreds of manufacturing jobs with only 10 weeks of severance, highlighting PepsiCo’s push to right-size its snacks operations

bags of frito-lay potato chips
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Overview

  • Manufacturing operations at the 55-year-old Rancho Cucamonga facility ceased on June 9, ending production of Cheetos, Tostitos, Doritos and Funyuns.
  • Hundreds of manufacturing employees were laid off immediately and granted 10 weeks of severance pay.
  • The company failed to file a WARN Act notice, providing no 60-day advance warning before the closures.
  • The plant’s warehouse, distribution, fleet and transportation units will remain active at the same location.
  • PepsiCo says the closure is part of efforts to reduce costs in its snacks division after slight sales declines driven by shifting consumer habits, federal food policies, obesity drugs and tariff pressures.