Food

PepsiCo cutting hundreds of jobs and closing major hubs

Tonya Costoff Medeiros

03 Mar 2026 — 2 min read

PepsiCo, makers of Frito-Lay, is laying off hundreds of workers. ©Image Credit: Unsplash / Zoshua Colah

It seems like snack food junkies may be on the decline. Snack food giant PepsiCo Inc., whose products include Frito-Lay's potato chips, Cheetos, and Doritos, is responding to lower sales across the board. The company will close its distribution facility, located in Rancho Cucamonga, CA, and lay off 248 employees.

The big question being asked is, will this closure and these layoffs be enough to stem the bleeding?

Healthier eating trend hits PepsiCo

There are several reasons PepsiCo's sales are dropping, but a big factor is the trend towards healthier eating and living in general. Consumers are more informed than ever before, and this means they are questioning ingredients and nutritional value.

Sure, you know that a handful of potato chips would taste great, but now there is thought behind your actions. There's a good chance you opt for something healthier whenever possible.

It's not just healthy eating that is driving the drop in sales. Most Americans are also feeling the squeeze on their wallet. If you have a strict weekly grocery budget, you probably don't prioritize junk food and snacks.

Revenue and sales volume are taking the hit

PepsiCo's 2024 data shows it took a hit of 3% in sales volume and 0.2% in revenue. That was enough to make the company stop in its tracks.

PepsiCo puts some of the blame on healthy eating, but also points out higher borrowing costs and inflation as culprits. The goal is to "balance production," and the hope is these cuts will do the trick.

The Great Snack-pocalypse

It's not just PepsiCo Inc that is noticing the trend, it's pretty much industry-wide. Other snack food manufacturers like J.M. Smucker and CandyWarehouse have reported sales drops, too.

CandyWarehouse had to go much further than PepsiCo to address its flailing sales. It filed for bankruptcy back in October 2025.

It's a brave new snack world

So what's the future of the snacking industry? Snacking isn't going to stop, but there's a good chance it won't go back to what it was. You may even be munching on a healthy granola bar or fruit snack right now. For consumers, it means a lot of exciting new offerings to come.

Source: TheStreet

FDA shares warning against eating these chocolates found to contain hidden drugs

If you've got a sweet spot for chocolate, you'll need to be careful about what brand you purchase. Gear Isle has issued a voluntary nationwide recall of a particular chocolate product. Chocolate contains undeclared ingredients Even though this is a voluntary product recall by the manufacturer

Netflix is raising prices for the second time in a year

Your streaming bill just crept up, as Netflix has raised its subscription prices again. This is the second time in just over a year, and this time, every single plan is getting hit. Let’s look at what is changing and how much more you will have to pay. Netflix

Chipotle and Outback among major chains making big menu changes

If you're tired of the same old menu items at your favorite fast-food restaurants, you may be in luck. A handful of chains, including Chipotle and Outback Steakhouse, are making menu updates and improvements their priority. It's all about the new items There's clearly

Feds warn of new crypto ATM scams specifically targeting senior citizens

You’ve probably seen those crypto ATMs tucked next to the snack aisle or near the lottery machine. They look harmless. Kind of futuristic, even. But officials are now warning that they have become a go-to tool for scammers targeting elderly people. This scam is pretty much "Panic as