Tyson Foods, the renowned meat processing company, is set to close two of its chicken processing plants, causing nearly 1,700 employees to lose their jobs. The facilities in Van Buren, Arkansas, and Glen Allen, Virginia, will be shut down on May 12, according to the company.
Shocking News Rocks Tyson Foods
The company stated that the decision was made to optimize operations and maximize capacity at its other facilities. The closure of the two plants was not an easy choice, but it was deemed necessary to strengthen Tyson Foods’ poultry business. Affected workers will receive assistance in finding new employment and may even be offered relocation to other Tyson plants.
Tyson Foods’ chicken business has underperformed in recent years, as seen in the 50% drop in operating income compared to the previous year. The president of the poultry business, David Bray, was ousted, and Wes Morris, the former president for prepared foods, took over. Morris stated in a recent earnings call that the company could do better in ensuring the right amount of chickens are in the right locations to meet customer demand.
Job Cuts Across the Food Industry
Tyson Foods is not alone in downsizing amid the unfavorable economic climate. Coca-Cola offered voluntary buyouts to its North American workers, while PepsiCo cut jobs in its North American beverage units and Frito-Lay snack division. McCormick, a spice company based in Maryland, also offered buyouts and laid off workers as part of a cost-saving plan.
The Impact on Fake Meat Companies
Even fake meat companies, such as Beyond Meat and Impossible Foods, are facing similar hardships. Both companies have cut over 20% of their workforce due to declining demand and a need to conserve cash. Beyond Meat’s shares dropped 75% in the first three quarters of 2022, resulting in a 20% reduction in workforce, affecting 200 employees. Impossible Foods also had to lay off 20% of its workforce, impacting 140 employees out of 700. The company stated that the job cuts were part of streamlining its business for future growth.
The food industry is not immune to the economic downturn, and companies are taking drastic measures to cut costs. The closure of Tyson Foods’ chicken processing plants and the loss of nearly 1,700 jobs is a significant blow to the industry and the affected employees. The downsizing trend across the food industry may continue, leading to further job losses and a decrease in food production. As consumers, we may soon face the consequences of these cost-cutting measures in the form of limited food choices and potentially higher prices.