Frito-Lay to lay off 65 Raleigh workers as it contracts out local distribution
AI-generated summary reviewed by our newsroom.
- The layoffs will become official on Sept. 6.
- Frito-Lay sent a July 6 WARN letter to state officials and the mayor.
- The Midway West Road facility will stay operational under an unnamed logistics provider.
The snack company behind Doritos, Cheetos, Tostitos and Ruffles is laying off nearly all of its workers at a distribution center in northwest Raleigh.
Frito-Lay, a subsidiary of PepsiCo, notified the North Carolina Department of Commerce and Raleigh Mayor Janet Cowell of its decision in a July 6 WARN letter to eliminate 65 of the facility’s 68 positions.
Businesses must file WARN notices to North Carolina officials at least 60 days before conducting certain mass layoffs, including the closing of a site “that affects at least 50 employees during any 30-day period.”
In an email Tuesday to The N&O, PepsiCo wrote that the distribution center on Midway West Road will remain fully operational under a new logistics provider. The company said it will help impacted employees apply for positions with the new provider, which Pepsi did not name.
The layoffs will become official on Sept. 6.
Pepsi is contracting out local distribution as Frito-Lay faces challenges from more health-conscious customers and more widespread GLP-1 use. The subsidiary’s sales fell 2% in the most recent quarter, with total units sold remaining even despite a price discount.
The parent company’s Wall Street fortunes have diverged from those of its main rival. While Coca-Cola has seen its stock rise close to 50% over the past five years (and nearly 20% so far in 2026), the share price of Pepsi has fallen 13% since 2021 and actually dipped close to 5% this year alone.
