Slump in demand forces Tyson to cut costs, shutter Iowa facility by June

Tyson Foods (NYSE: TSN) has announced the closure of its pork packing plant in Perry, Iowa, resulting in the loss of approximately 1,200 jobs. The decision comes as the meat processing giant seeks to reduce expenses in response to decreased demand for its products.

The plant is slated to cease operations by the end of June, affecting a significant portion of Tyson’s workforce in Iowa, which still stands at around 9,000 employees. The company stated that affected employees would be encouraged to apply for other positions within the organization.

While acknowledging the difficulty of the decision, a spokesperson for Tyson emphasized the company’s commitment to optimizing operational efficiency to better serve its customers.

This move is part of Tyson’s broader strategy to streamline its operations, with the closure of approximately nine processing facilities since the beginning of 2023. Previous closures included plants in Florida, Arkansas, Columbia, and Indiana.

Despite these challenges, Tyson Foods reported better-than-expected financial results in its recent quarterly report in February. The Arkansas-based company exceeded both revenue and profit projections.

Looking ahead, Tyson reiterated its focus on liquidity, financial health, and operational excellence. The CEO emphasized the company’s commitment to delivering value to customers and consumers.

In its guidance for fiscal year 2024, Tyson expects revenue to remain relatively flat compared to fiscal year 2023, with projected capital expenditure spending between $1.0 billion and $1.5 billion.