Tyson Foods has announced plans to close four chicken processing facilities, located in Corydon, Indiana, Dexter, Missouri, Noel, Missouri and North Little Rock, Arkansas in the US.
Through the closures, the meat giant aims to “optimise network asset utilisation,” as it adjusts to a decline and slowing demand for certain products.
Donnie King, president and CEO of Tyson Foods, said: “The difficult decision to close four chicken facilities in North Little Rock, Arkansas, Corydon, Indiana, Dexter, Missouri and Noel, Missouri, demonstrates our commitment to bold action and operational excellence as we drive performance, including lower costs and improving capacity utilisation, and build on our strategy of making Tyson Foods stronger in the long-term.”
The company expects to shift production to other facilities, with operations at the four plants slated to cease in late 2023 or by the first half of 2024.
Chief financial officer John Tyson told analysts that the four facilities account for about 10% of Tyson’s chicken-slaughter capacity.
The Mayor of Noel, Terry Lance, said that Tyson employs around 1,500 workers at the Noel facility, with the city’s total population reaching 2,100 people. “It’s going to impact the city pretty hard,” Lance said.
Local officials have reported that the closures could affect more than 680 people who work at the facility in Dexter, around 300 employees in North Little Rock and more than 500 jobs in Corydon, Indiana.
Tyson has not confirmed how many plant employees will be affected by the closures. The company said it will help relocate workers and encouraged them to apply for other positions at Tyson.
The news follows Tyson’s announcement in April that it was to cut approximately 15% of senior leadership roles and 10% of corporate roles as it looks to “prioritise work that drives value” for its customers and consumers. The month prior, Tyson reported it was shutting two US chicken processing plants, affecting almost 1,700 Tyson employees.
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