PepsiCo, the global snack and beverage giant behind brands like Lay’s, Doritos, and Pepsi, has announced the closure of its Frito-Lay manufacturing plant in Liberty, New York, dealing a devastating blow to the local economy. The shutdown, set for late spring, will result in the loss of 287 jobs, deeply impacting families in the small Catskills community.
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The plant, which has been operating in Liberty since 1997, has long been a major employer in the area. The decision comes as part of PepsiCo’s ongoing restructuring, citing market challenges and slowing demand for certain snack products.
Why This Matters: Economic & Employment Crisis
The mass layoffs at the Liberty facility come amid widespread job cuts across multiple industries in the U.S., with unemployment claims hitting a three-month high, according to recent data from the Department of Labor.
The closure of the Frito-Lay plant is especially concerning for Liberty’s workforce, as the town of approximately 10,000 residents relies heavily on the plant’s employment opportunities. The ripple effects will likely be felt across local businesses, schools, and real estate markets.
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Why Is PepsiCo Shutting Down the Liberty Plant?
PepsiCo Foods USA acknowledged that the Liberty plant has played a crucial role in the production of PopCorners, a popular brand of corn chips. However, in a statement, the company explained:
“The pace of growth for this product line, paired with broader industry trends, has made it difficult to sustain the site’s long-term viability.”
PepsiCo officially filed a Worker Adjustment and Retraining Notification (WARN) notice with the Department of Labor on February 18, confirming that layoffs will begin on May 21 and continue through June 6.
Despite the closure, PepsiCo expressed gratitude for its employees, stating:
“We deeply appreciate the contributions of our Liberty employees, and this decision does not diminish the value of their hard work and dedication.”
PepsiCo’s Financial Struggles & Previous Layoffs
The Liberty plant closure comes at a time when PepsiCo is facing a slowdown in North American sales, particularly in its Frito-Lay and beverage divisions.
- In Q4 2024, PepsiCo’s revenue dropped to $27.78 billion, down from $27.85 billion in the same quarter the previous year.
- The company’s net income increased by 17% to $1.52 billion, driven by cost-cutting and efficiency measures.
- Despite stronger earnings per share (EPS) of $1.96, surpassing analyst expectations, the company is aggressively restructuring operations.
This is not the first round of closures—in October 2024, PepsiCo shut down four bottling plants and laid off 400 workers nationwide as part of its broader cost-saving strategy.
Community Leaders & Lawmakers React to the Closure
The announcement has sparked concern and frustration among local officials, who fear the closure will have long-term consequences for Liberty’s economy.
Local Officials Respond:
A joint statement from Sullivan County Legislature Chair Nadia Rajsz, Town of Liberty Supervisor Frank DeMayo, and Village of Liberty Mayor Joan Stoddard emphasized the severity of the situation:
“We are deeply concerned about PepsiCo’s decision to shutter their Liberty food manufacturing facility, which has been an integral part of our community for decades and employs hundreds of locals. This action will have many impacts, which we intend to sort out with PepsiCo’s assistance in the coming weeks.”
Sullivan County Legislator Louie Alvarez also expressed concern:
“Most of these people have lived in Sullivan County for many years. Their families live here, they’ve bought homes here, their kids go to public schools here. The impact will be tremendous. … They are families who have been here a long time and now they have to start over again.”
What’s Next for the Affected Workers?
PepsiCo has stated that it is working closely with employees and local community officials to provide transition support.
The Town of Liberty has also pledged to assist those impacted by:
✅ Providing employment resources through the Center for Workforce Development
✅ Offering family support services to those affected
✅ Helping workers find new local job opportunities
Despite these efforts, many employees face uncertainty as they scramble to find alternative employment in the region.
Final Thoughts: A Tough Road Ahead for Liberty’s Workforce
The closure of the PepsiCo Frito-Lay plant in Liberty marks another blow to the U.S. manufacturing sector, especially in smaller towns that rely on major employers like PepsiCo. While PepsiCo continues to make strategic business decisions to navigate a shifting market, the human cost of these closures cannot be ignored.
As the layoff date approaches, affected employees and community leaders will be working together to minimize the economic fallout and support local families through this difficult transition.
For more updates on the Liberty plant closure and PepsiCo’s restructuring efforts, stay tuned.
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