PepsiCo Fires 300 Workers, Closes Longtime Plant in Upstate New York as It Comes Under Fire for DEI Rollback

Amid reports that PepsiCo is scaling back its DEI practices, news has emerged that a longtime plant in upstate New York has closed, resulting in the layoff of 300 employees.

The Times Union reports that the plant, which has been a major employer in the area for nearly 30 years, will begin layoffs on May 21. The notice became public when the outlet obtained a Worker Adjustment and Retaining Notification submitted by PepsiCo with the New York State Department of Labor. The notice specifies that the impacted employees are not unionized.

“This plant has played a vital role in producing our beloved PopCorners brand, but the pace of growth for this product line paired with broader industry pace of growth has made it difficult to sustain the site’s long-term viability,” PepsiCo said in a statement to the Times Union. “We deeply appreciate the contributions of our Liberty employees, and this decision does not diminish the value of their hard work and dedication. We have notified our workforce and are working closely with our employees and local community officials to provide a supportive transition.”

PepsiCo Becomes Latest Company To Roll Back DEI

Earlier this week, Bloomberg reported that PepsiCo became the latest company to roll back its DEI (diversity, equity, inclusion) policies, joining companies like Target, Tractor Supply, and Google in these efforts. According to a memo from CEO Ramon Laguarta, the company will eliminate workforce representation targets, discontinue the role of chief DEI officer, and broaden its supplier diversity program to encompass all small businesses, among other adjustments.

Target in particular is under backlash regarding its previous DEI initiatives, as it is embroiled in the midst of a class-action lawsuit.

The City of Riviera Beach Police Pension Fund filed a proposed class action complaint in Fort Myers, Florida, on Jan. 31 alleging that the firm deceived investors about the risks associated with its DEI and ESG activities.

The plaintiffs alleged that Target’s stock price skyrocketed between Aug. 26, 2022, and Nov. 19, 2024 (the Class Period) due to misrepresenting the dangers. This also caused investors to pay higher prices for Target shares throughout the Class Period, which finally declined in the following months.

Shareholders believe the store misled them by inadvertently urging them to support management’s “misuse of investor funds to serve political and social goals.” The complaint claims CEO Brian Cornell and other officials failed to sufficiently convey the risks associated with customer boycotts as a result of the company’s DEI policy.