PepsiCo will close a Frito-Lay distribution and warehousing facility in Rancho Cucamonga, California, with operations set to cease on June 6, according to a WARN notice filed with the state. The move will result in 248 layoffs.
The company had ended manufacturing at the Rancho Cucamonga plant in 2025 but continued to operate distribution and warehouse functions at the site. In a statement, PepsiCo said it plans to transition those operations to a new distribution centre within the local community to better serve customers and consumers.
The closure is part of a broader effort by the New York-based food and beverage giant to align its production and logistics footprint with moderating demand. Over the past year, PepsiCo has shuttered additional facilities across its network, including snack plants in Florida and New York.
Frito-Lay, which manufactures brands such as Cheetos and Doritos, has faced slowing volumes as inflation pressures weigh on discretionary spending. Consumers have also increasingly shifted toward products perceived as healthier, prompting PepsiCo to introduce snacks without artificial dyes and expand offerings featuring added protein, fiber and whole grains.
During its most recent earnings call, PepsiCo reported that volume and organic revenue in its North American food division both declined 2 percent for fiscal 2025.
PepsiCo operates through a mix of company-owned operations and franchise partnerships across its global beverage portfolio, particularly in bottling and distribution. While Frito-Lay’s U.S. snack business primarily runs on a direct-store-delivery model, the broader PepsiCo system includes franchised bottlers and partners in several international markets.
