The nation’s largest meat company, Tyson Foods announced Monday that it will close four more chicken plants in the U.S. to cut costs. This announcement would bring the number of total plant closures this year to six.
The company said in a statement that it will move the work performed inside the North Little Rock, Arkansas; Corydon, Indiana; Dexter, Missouri; and Noel, Missouri, plants to locations closer to its customer base.
Sales came in at $13.1 billion for the quarter, down 3% from last year. Adjusted operating income was $179 million compared to $998 million a year ago, driven by sizable pork and chicken losses and partially offset by positive prepared foods results.
"The difficult decision to close four chicken facilities… demonstrates our commitment to bold action and operational excellence as we drive performance, including lower costs and improving capacity utilization, and build on our strategy of making Tyson Foods stronger in the long-term," Tyson Foods CEO Donnie King said in a statement.
For the fiscal third quarter that ended July 1, 2023, the company recorded a loss of $417 million, a sharp contrast with the same quarter the previous year when the company earned $750 million.
Back in April, the company sent a memo to employees that it would eliminate 15% of its senior leadership roles and 10% of its corporate roles, the Wall Street Journal reported.
"While current market dynamics remain challenging, Tyson Foods is fully committed to our vision of delivering sustainable, top-line growth and margin improvement," King said. "I’m encouraged by the improvements we made this quarter, including our Tyson Core Business lines that continue to outpace our peers in volume growth."
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