PepsiCo to Close Rancho Cucamonga Center by June 2026, Cut 248 Jobs
PepsiCo’s fourth-quarter 2024 revenue fell 0.2% while Frito-Lay sales volume dropped 3% as consumers cut back under inflation, higher borrowing costs and health concerns. The company will permanently close its Rancho Cucamonga, California, distribution center by June 6, 2026, eliminating 248 jobs to align production with reduced demand.
1. Snack Sales Pressure
PepsiCo reported a 0.2% drop in fourth-quarter 2024 revenue alongside a 3% decline in Frito-Lay sales volume as consumers prioritize health, manage inflationary pressures and face higher borrowing costs. This marks the fourth consecutive quarter of volume declines for the Frito-Lay division, prompting strategic operational adjustments.
2. Rancho Cucamonga Facility Closure
On February 10, PepsiCo issued a Worker Adjustment and Retraining Notification for its Rancho Cucamonga, California, distribution center, planning a permanent shutdown by June 6, 2026. The closure will result in 248 layoffs as the company seeks to right-size its network to current demand levels.
3. Production Adjustment Strategy
The Rancho Cucamonga closure is part of a broader effort to balance production capacity with softer snack demand across North America. PepsiCo is evaluating additional distribution centers for potential consolidation to optimize logistics, reduce fixed costs and support long-term profitability.