Two Tyson Foods Chicken Plants Will Close Due To Layoffs Of 1,700 Workers

Almost 1,700 employees will be affected by Tyson Foods' closure of two chicken plants in May.

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

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Tyson's chicken business underperformed expectations in its most recent quarter, as its operating income, which is a measure of how profitable the business is, was half what it was a year ago. 

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There will be a closure of the company's plants in Van Buren, Arkansas, and Glen Allen, Virginia, on May 12, according to the company. There will be a shift in demand from one Tyson facility to another. Earlier this week, the Wall Street Journal reported that the upcoming closures would take place.

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As part of its efforts to help the affected employees, Tyson said it is assisting them in applying for open jobs and assisting them with relocation assistance to other plants. There are 692 employees at the Glen Allen plant, while there are 969 employees at the Van Buren plant.

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In an effort to cut costs, the meat giant has announced it is laying off workers in a bid to save money.

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As demand for alternative meat products wanes, both Beyond Meat and Impossible Foods have cut more than a fifth of their workforces in an effort to conserve cash as demand for the companies' products declines.

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During the past year, Coca-Cola has offered voluntary buyouts to its workers in North America, while PepsiCo has cut jobs in its Frito-Lay division and its North American beverage division. As part of a plan to save $75 million, spice giant McCormick said it would offer buyouts and lay off workers as a means of saving money.

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