- Frito-Lay has shut down snack production at its Rancho Cucamonga plant after 55 years. The facility was known for producing popular snacks like Cheetos, Doritos and Funyuns, and is linked to the origin of Flamin' Hot Cheetos.
- While manufacturing has ceased, warehouse, distribution, fleet and transportation units at the site will continue to operate.
- PepsiCo did not disclose how many of the 500 to 999 employees are affected but reportedly offered 10 weeks of severance pay; no WARN notice was filed with the state.
- The closure reflects broader challenges in the snack food industry, including declining demand driven by health trends, the rise of weight-loss drugs and potential SNAP restrictions.
- CEO Ramon Laguarta cited global trade uncertainty and tariff policies as reasons for "right-sizing" operations, with layoffs extending beyond California to facilities like one in Maryland.
Snack food giant Frito-Lay has closed its long-standing manufacturing operations at its Rancho Cucamonga facility after more than half a century, parent company PepsiCo Foods U.S. confirmed on Wednesday, June 11.
The facility, located on Archibald Avenue about 40 miles east of Los Angeles, opened in 1970 and had become a staple of the local economy and a key Southern California hub for the production of popular snack products, including Doritos, Lays and Cheetos.
"We are truly grateful for all the support over the last five decades from our Rancho Cucamonga manufacturing team as well as the local community," PepsiCo Foods U.S. wrote in their official statement. The Frito-Lay manufacturing plant, credited as the birthplace of Flamin' Hot Cheetos, notified its employees on Monday, June 9, that the site had produced its final batches of Cheetos, Doritos, Tostitos and Funyuns. (Related: Bankruptcy filings in U.S. surge at fastest pace since 2009 as Bidenflation continues to ravage Americans, businesses.)
The manufacturing lines have ceased operations, but other departments, including warehouse, distribution, fleet and transportation, will remain active at the site.
"We are committed to supporting those impacted through this transition and we are offering pay and benefits to impacted employees."
The closure comes nearly 35 years after Flamin' Hot Cheetos were introduced in 1991, a product widely associated with former janitor Richard Montañez, who claimed to have invented the fiery snack at the very same facility. Though the story has faced scrutiny, the lore surrounding the snack and its origins remains deeply tied to the Rancho Cucamonga plant.
Despite the abrupt halt in production, PepsiCo did not file a Worker Adjustment and Retraining Notification (WARN) with the state, as typically required. Instead, laid-off employees posted on social media that they had received 10 weeks of severance pay.
PepsiCo did not specify how many workers would be impacted, but California's Employment Development Department disclosed that the plant employed between 500 and 999 workers.
Health trends, trade pressures push PepsiCo to restructure Frito-Lay operations
The shutdown reflects larger challenges facing the snack industry.
Shifts in consumer behavior, increasing health awareness and the growing popularity of weight-loss drugs have softened demand for processed snack foods. Government efforts to restrict the use of federal food assistance (SNAP) for junk food are also weighing on industry projections.
On a broader scale, PepsiCo is navigating mounting global trade pressures.
In a February earnings call, CEO Ramon Laguarta cited increased uncertainty due to evolving tariff policies, many stemming from trade actions implemented under President Donald Trump and signaled a focus on "right-sizing" the company's snack division.
"In terms of SNAP … there's a lot of conversation in different states and we're seeing that some of our categories could be exposed to some restrictions," Laguarta said during the call.
Sales volume for Frito-Lay products slipped slightly in the first quarter of 2025, prompting cost-cutting measures across its operations. The company also recently laid off 56 employees at a warehouse in Maryland, as part of broader restructuring efforts.
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