Pepsico will soon dismiss 287 employees of a Frito Lay Manufacturing -Factory in Liberty, New York, probably destroyed the small city city of around 10,000 inhabitants.
Employees, who are not represented by a trade union, will officially start losing their job on 21 May, according to an adjustment from the employee and retraining report (warning) submitted to the New York Department of Labor.
The Frito Lay Factory, which produces Popcorners Brand Snacks, will be officially closed on 6 June. It employs hundreds of locals during its almost 30 years of operation.
The announcement has injected concerns into employees and government officials, who described the dismissal as 'devastating'.
“We are very concerned about Pepsico's decision to close their Liberty Food Manufacturing Facility, which has been an integral part of our community for decades,” wrote city and provincial officials in a statement.
“This promotion will have many consequences that we intend to find out with the help of Pepsico in the coming weeks.”
They said that various government agencies affected employees will help by 'providing services required to private individuals and families'. This includes support for staff to keep the dismissed employees employed.
The facility has been around since 1997, although for the first time it was owned by ideal snacks. Pepsico bought the facility in 2020.
Pepsico will soon be 287 employees of this Frito Lay Manufacturing Plant in Liberty, New York
The above factory, which officially closes on June 6, mainly makes Popcorners chips
Pepsico has made up for a cost -saving agenda and announced in October that it would close four bottling plants throughout the country. The move ensured that 400 employees lost their jobs.
The Food and Beverage Giant is located behind brands such as Gatorade, Lay's, Doritos and Mountain Dew.
Pepsico also had Pizza Hut, Taco Bell and KFC, before sold these entities to Yum! Brands in 1997.
The net turnover of the company has grown by 37 percent over the past five years to almost $ 92 billion, according to the last release of profit.
The turnover in the fourth quarter, however, fell to $ 27.78 billion thanks to stubborn high prices and shifting the flavors of the consumer who have weakened the demand for his snacks and drinks.
In the past year, Pepsico shares has fallen by almost 10 percent. Shares of his most important rival, Coca-Cola, are no less than 18 percent higher in the same period.
In a statement that tackles the dismissals in Liberty, Pepsico said that it “contacted various officials in the government to discuss the site and workforce.”
“At the moment we are most focused on our affected workforce and offering support,” the company said.
Two employees in the factory in Liberty and a husband of an employee spoke with the Albany Times-Union about the latest job losses.
This is when Pepsico has adopted a cost -saving agenda. The company has already closed four bottle factories in recent months and has fired 400 employees
Pepsico performed somewhat at the back of the turnover in the last quarter, stating high prices and shifting consumer question. Nevertheless, the most important rival Coca-Cola has made the expectations of the market
Some said they have already prepared jobs, while others are worried that they are unable to find work in Liberty, which is about two hours of drive north of New York City.
The staff was aware of the closure of the factory on 18 February, employees said. The facility remains closed the rest of last week before he reopens on Sunday. Employees said they were still paid that week.
Employees are expected to work until 6 April, but will continue to receive salary until 19 May. They then receive dismissal payments.
Many of the employees of the facility are immigrants who mainly speak Spanish, Louie Alvarez, legislator of Sullivan County, told The Times-Union.
The most important fear of Alvarez is not that people will ultimately not find any jobs, but that the number of people in the labor market will extend their unemployment in one go.
Marc Baez, president and CEO of the Sullivan County Partnership for Economic Development, said that the relocation of Pepsico will have a negative downstream effect on the community in general.
“Every entity that loses such a large employer, there will certainly be a devastating effect,” Baez told The Times-Union.
'Even if you only look at the payroll that is paid, it might not be something important individually, but together 287 people who go to local shops and restaurants, supermarkets. … there is an induced negative impact on the community. It is now our job to change gear and to see if we can find someone we can place in that facility. '
Baez said there has been some interest from national and local companies to buy the soon -closed factory.
