Tyson Foods Inc. announced the closure of four additional chicken plants in Arkansas, Indiana, and Missouri as part of its cost-cutting measures. This decision will significantly impact small communities in the U.S. heartland, which rely on the meatpacker for nearly 3,000 jobs.
Despite enjoying substantial profits during the surge in meat prices amid the COVID-19 pandemic, Tyson is now grappling with a market downturn and waning demand for certain products. Earlier this year, the company shut down two chicken plants in Arkansas and Virginia, affecting almost 1,700 workers. Corporate layoffs have also been reported.
Local officials expressed their shock and disappointment at Tyson’s decision, noting that the four plants have been community mainstays for over half a century.
The affected plants, located in North Little Rock, Arkansas; Corydon, Indiana; Dexter, Missouri; and Noel, Missouri, will transition their operations to newer facilities situated closer to Tyson’s customer base. These closures are scheduled for late 2023 or early 2024, as per the company’s statement.
These four plants represent approximately 10% of Tyson’s chicken-slaughter capacity, according to Chief Financial Officer John R. Tyson during an analyst call.
In Noel, Missouri, the company employs around 1,500 individuals, nearly matching the city’s total population of 2,100, Mayor Terry Lance remarked. “This will significantly impact our community,” Lance stated.
John Newby, President and CEO of the McDonald County Chamber of Commerce on losing jobs in Noel.
Dexter’s facility employs about 683 people in a city of roughly 8,000 residents. City Administrator David Wyman expressed his hope to link these workers with other local job opportunities. “The community needs these jobs, and now they’re gone,” Wyman commented.
Furthermore, Tyson’s decision has temporarily halted Dexter’s plans for an $18 million wastewater treatment facility. The city had been collaborating with plant management on this project. The shutdown will also impact approximately 29 local farmers who supply chickens and grain growers producing chicken feed.
While Tyson did not disclose the exact number of affected employees, the company pledged support in relocating workers and urged them to seek other roles within Tyson.
“These decisions are never easy,” CFO Tyson mentioned in an interview. “However, in the long run, this strategy will enhance our efficiency and better serve our customers.”
CEO Donnie King noted that the plants in question are generally smaller and require significant capital investments to remain operational.
Local authorities reported that the recent closures will affect around 300 workers in North Little Rock and over 500 in Corydon, Indiana.
Bruce Cunningham, Corydon’s town manager, remarked, “When major corporations make such business decisions, our hands are tied. The decision is final, and we must look ahead.”
