Tyson Foods has announced the closure of two chicken plants in May, which will impact nearly 1,700 employees.
The company stated, “While the decision was not easy, it reflects our broader strategy to strengthen our poultry business by optimizing operations and utilizing full available capacity at each plant,” according to a statement.
In its most recent quarter, Tyson’s chicken division did not meet expectations, with its operating income falling to half of what it was in the same period last year.
The plants in Van Buren, Arkansas, and Glen Allen, Virginia, are scheduled to close on May 12, with demand being redirected to other Tyson facilities. The Wall Street Journal was the first to report on these closures.
Tyson indicated that it is assisting affected employees with job applications and providing relocation support to other plants.
The Glen Allen plant employs 692 people, while the Van Buren facility has 969 workers.
Tyson Foods joins other food suppliers in reducing their workforce as part of cost-cutting measures.
Companies such as Beyond Meat and Impossible Foods, which produce alternative meats, have reduced their workforces by over 20% due to declining demand and a need to preserve cash.
Additionally, Coca-Cola has offered voluntary buyouts to its North American employees, and PepsiCo has implemented job cuts in its Frito-Lay and North American beverage divisions.
McCormick, a major spice manufacturer, has announced plans for buyouts and layoffs as part of an initiative to save $75 million.
