PepsiCo, the global food and drink giant behind brands like Lay’s, Gatorade, and Quaker, has announced plans to close its Frito-Lay plant in Liberty, New York.
The plant, which has operated since 1997, will shut down at the end of spring. The closure will result in 287 layoffs, according to a recent filing with the Department of Labor.
The facility’s closure is expected to impact Liberty’s economy significantly, as the plant has been a key local employer for decades.
What’s Behind the Closure?
The Liberty plant produces PopCorners, a popular corn-based snack.
However, PepsiCo says the product’s growth rate, combined with slower growth across the snack industry, made it difficult to justify keeping the plant open.
In a statement, PepsiCo Foods USA said:
“We deeply appreciate the contributions of our Liberty employees, and this decision does not diminish the value of their hard work and dedication.”
According to a Worker Adjustment and Retraining Notification (WARN) notice filed on February 18, layoffs at the plant will begin May 21 and continue through June 6.
The Bigger Picture: Layoffs and Slowing Sales
The plant’s closure comes at a time when layoffs are affecting workers across many industries.
Government job cuts are also making headlines, while unemployment claims in the US recently hit a three-month high, according to a February report from the Labor Department.
PepsiCo itself reported lower revenue in the fourth quarter of 2024, as consumers cut back on snack and beverage purchases.
The company’s revenue fell to $27.78 billion for the quarter, down from $27.85 billion the previous year.
Despite the dip in revenue, PepsiCo’s net income rose 17% to $1.52 billion, helped by cost controls and price increases.
Core earnings per share reached $1.96, beating analyst expectations.
Local Leaders React
The announcement sparked concern from local officials, who fear the closure will hit Liberty and surrounding areas hard.
In a joint statement on February 19, Sullivan County Legislature Chair Nadia Rajsz, Town of Liberty Supervisor Frank DeMayo, and Village of Liberty Mayor Joan Stoddard said:
“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 told The Times Union:
“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.”
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What Happens Next?
PepsiCo says it has notified all affected employees and is working with local officials to support workers during the transition.
The Town of Liberty also pledged to assist:
“We will provide needed services to individuals and families, and offer the full support of our Center for Workforce Development in keeping our residents locally employed.”
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Key Takeaways from the Liberty Plant Closure
- Plant History: Operating since 1997, the Liberty plant employed 287 workers at the time of the closure announcement.
- Timing: Layoffs will begin May 21 and continue through June 6.
- Reason for Closure: PepsiCo cited slower product growth and broader industry challenges.
- Economic Impact: Local leaders expect the closure to have a serious effect on the regional economy.
- Support Plans: PepsiCo and local agencies have pledged to assist workers with reemployment and transition services.
With PepsiCo facing softening sales in its core North American market, more operational changes could be ahead for the company in 2025.
