Tyson Foods, one of the leading producers of chicken, beef, and pork in the United States, has announced the closure of four chicken processing plants as part of a cost-cutting measure. The company plans to shut down facilities located in Corydon, Indiana; Dexter, Missouri; Noel, Missouri; and North Little Rock, Arkansas, within the first half of 2024. The exact number of employees affected by these closures is yet to be determined.
The decision to close these facilities comes as Tyson Foods reported a decline in sales during the third quarter of this year. The company’s sales were down 3% compared to the same period in the previous year. Adjusted operating income decreased by 82%, reaching $179 million, while earnings per share dropped by 92%, amounting to $0.15. Recognizing the challenging market dynamics, Tyson Foods aims to streamline its operations and drive performance by cutting costs and optimizing capacity utilization.
In a statement, Tyson Foods CEO and President Donnie King emphasized the company’s commitment to take bold action and pursue operational excellence. He explained that the closure of the four chicken processing plants aligns with the company’s strategy to improve its long-term strength. The decision reflects Tyson Foods’ focus on lowering costs while ensuring sustainable growth.
These facility closures follow the shutdown of two other plants earlier this year. In May, Tyson Foods ceased operations at facilities in Glen Allen, Virginia, and Van Buren, Arkansas, resulting in nearly 1,700 workers being laid off. Now, with the forthcoming closures of the four additional sites, more jobs could be at risk.
Tyson Foods plays a significant role in the food supply chain, providing approximately one-fifth of all chicken, beef, and pork sold in the United States. The company’s cost-cutting efforts, while necessary to adapt to the current market conditions, highlight the broader challenges faced by the industry as a whole.
As Tyson Foods moves forward with its cost-cutting strategy, it remains to be seen how the closures will impact the company’s operations. Moreover, the potential impact on employees and local communities cannot be overlooked. The company’s decision underscores the need for innovative approaches and adaptability within the food processing sector in order to navigate the ever-changing market dynamics.
