Close to 30% of jobs are set to go at a PepsiCo Frito-Lay crisps manufacturing factory in Middletown, New York State.
The decision was made for “economic” reasons, according to a WARN filing published Wednesday (29 May).
Layoffs are due to begin on 30 August, ending on 13 September, the notice said.
A total of 88 of the 305 workers at the Orange County plant will see their jobs put on the line. Frito-Lay employees are not represented by a union.
Just Food has contacted PepsiCo and Frito-Lay for comment on the matter.
Frito-Lay made up close to 30% of the US snacks giant’s net revenue for 2023, which sat at $91.4bn, an increase of 5.8% on the previous year.
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By GlobalData
The PepsiCo subsidiary has more than 30 crisp manufacturing sites in the US, according to its website. The group has around 55,000 employees across North America.
Its portfolio includes 29 savoury snacks brands, such as Lay’s potato crisps, Cheetos corn puffs, Doritos tortilla crisps and Spitz sunflower seeds.
Earlier, in April, the Sabra humous owner also announced job losses at a snacks and crackers facility in Argentina, as it came to terms with a “challenging” economic environment.
The move was expected to affect 36 roles at the company’s General Pueyrredón facility in Buenos Aires.
At the time, the company told Just Food that the move was made “to ensure the long-term viability” as it faced “a challenging economic environment, marked by falling production volumes”.
That same month, PepsiCo also came under fire from US unions over carrying out unfair labour practices by installing “anti-working policies”.
Unions in Iowa, Illinois and Indiana states each filed complaints to the National Labour Relations Board, claiming the Quaker Oats maker had “unlawful” regulations in place which prevented employees from discussion pay and working hours.
