Dive Brief:
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Tyson Foods is laying off workers at a Wilkesboro, North Carolina, chicken processing plant as it looks to cut costs and implement technological advancements to streamline production.
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The Arkansas-based meat company is shifting production to support demand for fully-cooked products, meaning “fewer positions will be required” at the Wilkesboro facility, a spokesperson said in an email to Agriculture Dive.
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Tyson declined to comment on the scope of the layoffs, but said its “priority is to help team members impacted by this change.” Local news outlets have reported 400 layoffs, though the Wilkes Record said as many as 1,000 workers may have lost their jobs.
Dive Insight:
Over the past year or so, Tyson has closed nine processing plants — six chicken and three fresh meats — and downsized operations at a number of factories, including a round of layoffs at Wilkesboro in late September 2023. At the time, the company reportedly reduced the plant’s workforce by 250 people, citing weak customer demand.
Shortly after, the meat company opened one of its most technologically-advanced production plants in Danville, Virginia, where Any’tizers snacks and chicken nuggets are processed more efficiently than at other fully-cooked locations. Up to 4 million pounds of protein can be processed there each week.
Tyson’s chicken business had one of its best quarters in years, CEO Donnie King said in an earnings call last week, driven by operational and market improvements that have allowed the company to reinvest in the value-added business for long-term growth and accelerate the ramp-up at Danville.
The state of North Carolina has not received a WARN filing from Tyson as of Tuesday. However, a spokesperson said its local NCWorks team is monitoring the situation and is ready to assist affected employees. Roughly 2,500 people work at the Wilkesboro Tyson plant.
The changes add to a series of production layoffs and closures for meatpackers and agricultural equipment makers looking to cut costs and consolidate operations, often to the detriment of small rural towns.
While the exact number of positions cut is uncertain, the layoffs appear to be significant. Wilkesboro Mayor Dale Isom posted on Facebook last week about a time when he lost his job at a poultry company and struggled to support his pregnant wife.
“My point is that a lot of folks are getting the same news I did,” Isom wrote. “They wonder about their health insurance and where their next paycheck is coming from. I encourage you and I encourage me to be there for those folks.”
