Tyson Foods abruptly closes 3 factories with 1,038 layoffs confirmed скачать в хорошем качестве

Tyson Foods abruptly closes 3 factories with 1,038 layoffs confirmed

Over the past few years, employees at several Tyson meat processing plants have faced challenging times. Tyson, known as the nation's largest meat company and the world's second-largest processor and marketer of chicken, beef, and pork, has experienced a series of incidents leading to plant closures. These closures have unfortunately resulted in the layoffs of thousands of workers. In Emporia, Kansas, a large beef and pork processing plant, spanning 328,000 square feet, was closed on February 14, 2025. This closure affected 809 workers who were laid off. Tyson has encouraged these employees to seek other job opportunities within the company. Just a couple of weeks before the closure of the Emporia plant, Tyson also shut down two of its prepared food plants in Philadelphia. These facilities were known for producing Philly cheesesteaks and were referred to as the 'Original Philly' plants, named after Tyson's line of prepared Philly cheesesteaks. The closure of these two plants affected a total of 229 workers. Tyson stated that this decision was part of their business strategy to enhance operational efficiency. The recent closures are not a new development for Tyson. In 2022, the company initiated a restructuring program aimed at consolidating corporate headquarters, cutting expenses, and boosting efficiency, as detailed in filings with the U.S. Securities and Exchange Commission. This led to thousands of employees facing layoffs. By 2023, Tyson had closed a total of eight processing plants, which included six poultry and two beef facilities. Eight plant closures represent a significant number, impacting a substantial workforce. In 2023, the closure of eight processing plants led to over 4,200 workers being laid off. The affected locations included: Due to the closure of numerous poultry processing plants, many chicken growers found themselves burdened with significant debt from loans taken out for contracts with Tyson. One such farmer, Timothy Bundren from Arkansas, lost his contract when Tyson shut down several nearby plants. Reflecting on the situation, Bundren shared, "If I'm understanding this correctly, I'm out of business. How am I going to repay such a large loan?" In 2023, we witnessed a wave of mass processing plant closures, with several more occurring earlier this year. Looking ahead to August, more changes are expected. Fortunately, this time, it's an acquisition, which means employees aren't facing layoffs despite the issuance of a WARN notice, commonly linked to layoffs and closures. In this case, a Tyson cold storage facility in Pottsville, Pennsylvania, is being sold to Lineage. Once the transaction is finalized, all 314 employees will transition over to Lineage. This change is scheduled to take place on August 15, 2025. Several factors have contributed to the closures of Tyson plants. One significant issue has been the devastating outbreaks of bird flu, also known as avian influenza, which have severely impacted poultry processing facilities. From February 2022 to January 29, 2025, the United States lost over 79 million birds to this outbreak. This number does not even account for the birds affected by the most recent wave of bird flu. You might remember the egg shortage earlier this year, which was also a result of a bird flu outbreak. The situation escalated at the end of 2024, prompting California to declare a state of emergency due to the crisis. Near the end of 2023, Tyson encountered another challenge when they had to recall over 30,000 pounds of dinosaur-shaped chicken nuggets. This action was prompted by consumers finding metal pieces in the nuggets. Thankfully, the recall resulted in only one minor mouth injury. However, it was another factor contributing to the difficulties faced by Tyson's poultry division. Another significant challenge affecting Tyson is the shortage of cattle. Over the years, cattle farmers have been reducing their herds due to several factors: higher interest rates, droughts impacting grazing lands, rising hay costs, and increasing feed expenses. Consequently, beef prices have surged to an unprecedented $9.26 per pound because supply can't keep up with demand. This year alone, beef prices have already risen by 9%. In the past year, steak prices have increased by 12.4%, and ground beef prices have gone up by 10.3%, according to the Labor Department’s consumer price index. The shortage of cattle to meet demand has significantly affected Tyson, leading to beef processing plant closures. This situation is particularly impactful for Tyson, as its beef business is its largest unit, resulting in an adjusted operating loss of $291 million for the 2024 fiscal year. The closures of certain facilities are occurring in rural areas where these plants serve as the primary source of employment. Consequently, some poultry farmers have taken legal action against Tyson. They claim that Tyson misled them into believing the poultry facilities would stay operational, eve