Neighbor News
Frito-Lay To See Drastic Production Cut
The snack food manufacturer faces potentially devastating stretch in the near future.
Citing a major shortfall of raw materials, Frito-Lay has informed employees that production will be reduced to 40% of normal starting sometime after Labor Day according to a source close to the company.
Frito-Lay, a subsidiary of PepsiCo, generated $5.34 billion in revenue for PepsiCo in 2020. Any long term production cuts could spell doom for the Plano, Texas company that employs workers in 40 countries.
While employees will not see a reduction in hours in the short term according to the same source, it seems likely that should a prolonged supply shortage hit the company, hour reductions and layoffs could be possible.
