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Smithfield Foods, the US pork and packaged meats giant, will close its dry sausage facility in Springfield, Massachusetts, in August 2026, laying off 190 employees, the company confirmed.

Production will shift to other Smithfield plants with sufficient capacity to maintain quality standards.

The closure is part of Smithfield’s broader strategy to consolidate manufacturing operations and manage costs amid inflationary pressures in the meat sector.

In a statement to FoodBev, the company said it is supporting affected employees through the transition, including opportunities to apply for roles at other facilities.

Smithfield expanded its dry sausage production capacity with the 2024 acquisition of a Cargill plant in Nashville, Tennessee, which can produce 50 million pounds of pepperoni and charcuterie-style meats annually.

The company says the move allows it to maintain supply without building new facilities or acquiring additional brands.

Despite consolidating operations, Smithfield has projected continued growth in the dry sausage segment, which the company estimates will expand by roughly 6% through 2030.

Social media-driven trends around charcuterie boards have contributed to sustained demand for salami, pepperoni, and other snackable meats, even as the initial surge in popularity has tapered.

The Springfield closure follows other cost-optimisation measures, including the sale of over one-third of Smithfield’s hogs to reduce exposure to volatile agricultural markets.

Simultaneously, Smithfield has invested in its packaged meats portfolio, most recently through the $450 million acquisition of popular hot dog brand Nathan’s Famous.

This strategy has helped Smithfield deliver record operating profits in its packaged meats segment, where sales rose 9% to $2.1 billion in the third quarter.