Tyson Posts Another Quarterly Loss; Will Close Four Chicken Processing Plants

Aug. 7, 2023

In conjunction with the announcement of a $417 million Q3 loss, Tyson Foods announced that it will shutter four chicken plants in Arkansas, Indiana and Missouri.

Andy Hanacek

Tyson Foods will close four of its chicken-processing plants in an effort to lower costs, the company announced in conjunction with the release of its fiscal third-quarter financial results. The plants slated to shutter are in North Little Rock, Ark., Corydon, Ind., Dexter, Mo., and Noel, Mo.

The plants are expected to close in the first two quarters of fiscal 2024, and the company estimates it will have $300 million to $400 million in total charges. This is the latest cost-cutting move by the company, whose finances have been clobbered over the last six to 10 months.

“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,” said Donnie King, president and CEO of Tyson Foods, in the company’s release.

The company posted a surprise loss in the second quarter and cut its sales forecast in May of this year, and in Monday’s fiscal third-quarter announcement, it reported a loss of $417 million for the period ended July 1.

The closure of the four plants is the latest in a series of moves to turn the tides in its favor. In March, the company announced that two plants in Van Buren, Ark., and Glen Allen, Va., would be shuttered. And this summer, the company’s corporate offices in Chicago and Dakota Dunes, S.D., were closed and the workforce laid off or consolidated to its Springdale, Ark., global headquarters.

In addition, the company laid off 15 percent of its senior leadership and 10 percent of its corporate workforce this spring to combat the financial losses the company has faced.

About the Author

Andy Hanacek | Senior Editor

Andy Hanacek has covered meat, poultry, bakery and snack foods as a B2B editor for nearly 20 years, and has toured hundreds of processing plants and food companies, sharing stories of innovation and technological advancement throughout the food supply chain. In 2018, he won a Folio:Eddie Award for his unique "From the Editor's Desk" video blogs, and he has brought home additional awards from Folio and ASBPE over the years. In addition, Hanacek led the Meat Industry Hall of Fame for several years and was vice president of communications for We R Food Safety, a food safety software and consulting company.