Tyson Foods had sales below analyst expectations and will cut 500 jobs, mostly corporate positions, according to its quarterly report.
In a filing with the U.S. Securities and Exchange Commission, Tyson reported sales of $10.82 billion for the last quarter of 2019. While this is a 6% increase over the previous year, it was about 2% less than analyst’s expectations, as reported by CNBC. Net income was $557 million, a 1.6% increase over 2018’s last quarter.
The SEC filing included a restructuring charge of $44 million for severances and other costs associated with anticipated job cuts.
“As part of the 2020 Program, we estimate the elimination of approximately 500 positions across several areas and job levels, with most of the eliminated positions originating from the corporate offices in Springdale, Arkansas and Chicago,” the report stated.
Tyson is struggling to cope with a fire that temporarily closed a beef slaughterhouse in Kansas last year, disrupting its operations and causing an 8% drop in beef sales volume. The company is trying to take advantage of an increased demand for pork in China, in the wake of an infectious disease outbreak that has wiped out half of China’s hog herd.
“With improved access to global markets resulting from recent trade developments, there are reasons to be optimistic about fiscal 2020 and beyond and we are well-positioned to capitalize on opportunities in the global marketplace,” CEO Noel White said in a statement.
