November 29, 2023

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Tyson Foods lays off 1,700 workers and closes two chicken factories

Tyson Foods lays off 1,700 workers and closes two chicken factories

  • Tyson Foods will close two chicken plants in May as part of a plan to boost the poultry business.
  • Last quarter, the meat giant said its chicken business fell short of expectations.
  • Other food suppliers, including PepsiCo and Beyond Meat, have laid off workers in recent months to cut costs.

Package from Tyson Foods Inc. Chickens are arranged for a photo op in Tiskeloa, Illinois.

Daniel Acker Bloomberg | Getty Images

Tyson Foods will close two chicken plants in May, affecting approximately 1,700 employees.

“While the decision was not easy, it reflects our broader strategy to strengthen our poultry business by improving operations and utilizing the full capacity available at each plant,” Tyson said in a statement to CNBC.

In her last quarter, Tyson The chicken business was sub par Expectations as its operating income decreased by half compared to the same period last year.

The company’s plants in Van Buren, Arkansas, and Glen Allen, Virginia, will close on May 12. The order will be transferred to other Tyson facilities. The Wall Street Journal First reported on upcoming closures.

Tyson said it is working with affected employees to apply for open positions and help transition to other plants. The Glen Allen plant employs 692 employees, while the Van Buren facility employs 969 workers.

The meat giant is the latest food supplier to lay off workers in an effort to cut costs.

Behind Meat and Impossible Foods, both of which make alternative meats, have cut more than a fifth of their workforce as demand for their products slumps and companies look to conserve cash. Coca-Cola offered voluntary buyouts of North American workers, while PepsiCo cut jobs at its Frito-Lay and North American beverage units. Spice giant McCormick said it would offer buyouts and layoffs as part of a plan to save $75 million.

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