Frito-Lay Manufacturing Operations Halt in Rancho Cucamonga, Impacting Local Workers

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Frito-Lay Manufacturing Operations Halt in Rancho Cucamonga, Impacting Local Workers
Bags of chips manufactured by PepsiCo Frito-Lay brand are seen on a shelf on March 22, 2010 in Miami, Florida. Joe Raedle/Getty Images/Getty Images

Frito-Lay has ceased manufacturing operations at its long-standing Rancho Cucamonga plant, marking the end of over 50 years of production and affecting numerous local workers.

The announcement came from PepsiCo Foods US on June 11, confirming the closure while stating that other operations at the site, such as distribution and transportation, will continue.

The plant, which opened in 1970, has been a major employer in the area for decades. It also holds a special place in snack history, as it was once connected to the story of Flamin' Hot Cheetos.

Richard Montañez, who once worked at the site, claimed to have created the popular snack there. However, PepsiCo and Frito-Lay have since disputed that origin story, USA Today said.

"We are truly grateful for all the support over the last five decades from our Rancho Cucamonga manufacturing team as well as the local community," PepsiCo said in a statement.

"We are committed to supporting those impacted through this transition and we are offering pay and benefits to impacted employees."

Employees Claim Little Warning Before Frito-Lay Layoffs

Still, the company has not confirmed exactly how many employees are affected by the shutdown.

The California WARN database, which lists mass layoffs and requires 60 days' notice, did not include the Rancho Cucamonga plant as of June 11. This has raised questions about how much notice workers actually received.

Some former employees told KTLA they were laid off without the chance to transfer to other departments.

According to the LA Times, one worker shared online, "I was supposed to get married this year, now I have to find a new job or at least figure a way to survive."

Other posts mentioned that laid-off workers were offered about 10 weeks of severance pay.

Frito-Lay is part of a larger trend for PepsiCo, which has been closing or cutting operations at other locations. Earlier this year, the company shut down its Liberty, New York, plant, affecting nearly 300 workers, and made cuts at a warehouse in Maryland.

The moves follow a drop in snack sales during the first quarter, with CEO Ramon Laguarta saying they are working to "right-size the cost" of the snack division.

While the Rancho Cucamonga site will still support warehouse and transport work, the loss of manufacturing has hit the local workforce hard.

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