Based in Springdale, Arkansas, the firm has unveiled plans for a top-down restructuring of its beef operations to position itself for long-term success, resulting in more than 3,000 job cuts.
Tyson Foods will now anchor its beef business around three “strategically located” beef facilities in the central US: Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas.
The company said the restructure has been undertaken to create “a more competitive footprint” amid one of the most severe cattle shortages in US history.
As a result, Tyson Foods will end operations at its Joslin, Illinois, beef facility and its Eagle Mountain, Utah, case-ready facility, with capacity from these locations being transferred to more strategically located facilities with room for expansion.
The closures will affect approximately 3,200 jobs across the two sites.
The business’ European presence is centred on its processing site in Ashford, Kent. It also maintains a corporate headquarters in Amsterdam and a secondary office in London.
In its latest third-quarter results, Tyson Foods posted sales of US$13.87 billion, up 0.6% year on year.
The US cattle shortage was reflected in a 2.8% year-on-year decline in volume. However, the manufacturer increased its adjusted operating income by 8.3% to US$547 million, while its adjusted operating margin expanded by 30 basis points to 3.9%.
Tyson Foods president and CEO Donnie King said: “We delivered strong third quarter results, fuelled by continued strength in our Chicken and Prepared Foods segments, with seven consecutive quarters of growth in Chicken and continued market share gains by our iconic brands.
“These results reflect the power of our differentiated multi-protein portfolio, strong customer partnerships and focus on operational excellence. We remain confident in our ability to deliver long-term growth and create value for shareholders through disciplined execution of our branded food products strategy.”
