Home Business Tyson Foods to lay off 1,700 workers, close two chicken plants

Tyson Foods to lay off 1,700 workers, close two chicken plants

by SuperiorInvest

Tyson Foods Inc. Chicken Package is arranged for photography in Tiskilwa, Illinois.

Daniel Acker | Bloomberg | Getty Images

Tyson Foods will close two smokehouses in May, affecting nearly 1,700 employees.

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

In its latest quarter, Tyson’s the chicken business was not doing well expectations as its operating revenues were half the year-ago period.

The company’s plants in Van Buren, Arkansas, and Glen Allen, Virginia, will close on May 12. Demand will shift to other Tyson facilities. The Wall Street Journal first informed about the upcoming closures.

Tyson said it is working with affected employees to request vacancies and help with relocation to other plants. The Glen Allen plant has 692 employees, while the Van Buren plant has 969 employees.

The meat giant is the latest food supplier to lay off staff in a bid to cut costs.

Except meat and Imposible Foods, which both make alternative meats, have laid off more than a fifth of their workforce as demand for their products falls and the companies try to conserve cash. Coca-Cola offered voluntary buyouts to North American workers while PepsiCo cut jobs at its Frito-Lay and North American beverage units. Giant spices McCormick said it would offer buyouts and lay off employees as part of a $75 million savings plan.

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