Pepsico has announced that it will close its Hudson Valley manufacturing facility, which makes popcorn snacks. As a result, nearly 300 people lost their jobs.
The decision to close New York's freedom marks the end of the era of plants, which has been a key employer in the area for nearly 30 years.
PepsiCo spokesman He spoke to the Albany Times Union The closure of facilities as the company has explained as a challenge in maintaining long-term operation amid the changing snack industry.
According to a worker coordination and retraining notice (warning) submitted to the State Department, layoffs will begin on May 21st and will take place over two weeks.
According to submissions, the affected employees are not unionized.
In a statement to the press, PepsiCo recognized the factory's contributions, but cited wider industry trends and slower growth in product lines as the reasons for the closure.
“This factory has played an important role in producing our beloved Pop Corners brand, but the pace of growth in this product line and the pace of growth in the broader industry has led to the long-term site experience. “It has become difficult to maintain the viability of the company,” PepsiCo said in a statement. .
“We are deeply grateful for the contributions of our freedom employees. This decision does not reduce the value of their hard work and dedication.”
The company “notifies employees” and said it will “work closely with employees and community officials to provide a supportive transition.”
The Liberty facility has years of connection to the community and was first run under the ideal snack when it was founded in 1997.
In 2003, the factory expanded. It reflects early success. However, in 2017, the company was BFY and Inc. Just before it was sold to, about 200 employees were fired, prompting a lawsuit from two former workers.
In 2019, PepsiCo, a $29 billion multinational food and beverage company known for brands such as Pepsi, Rays, Gatorade and Quaker, has announced that it will be separate from the Liberty factory and nearby Middletown as part of its purchase of the BFY brand. acquired the facility.
The Middletown facility experienced significant employment cuts last year, citing economic factors, when the company cut a third of its workforce.
News of the closure sparked concern among local officials who highlighted the role of the factory as the region's leading employer.
In a joint statement, Sullivan County Council Chairman Nadia Rajs, Liberty Town Superintendent Frank DeMayo and Liberty Mayor Joan Stoddard expressed disappointment at PepsiCo's decision.
Local officials and economic development groups are currently working to mitigate the impact of the closure.
The governments of counties, towns and villages have announced plans to work with PepsiCo, the Chamber of Commerce and the Sullivan County Partnership for Economic Development to support displaced people.
Despite the set-up, Sullivan County has seen recent economic growth.
Last year, the county reported the most powerful private sector employment growth in Hudson Valley and a slight decline in unemployment.
However, the challenge remains as 14.8% of county residents were in poverty in 2023, with a higher rate than the national average of 12.5%, according to US census data.
Sullivan County Councilman Louie Alvarez expressed concern about Liberty's impact on the Hispanic community, highlighting the economic tensions the closure could cause for many families.
“This will hit us very hard,” Alvarez said in an interview with WJFF Radio Catskill.
