US pork processor Smithfield Foods is set to close 35 hog farm sites in Missouri, laying off 92 employees in October.
The meat group filed a Missouri Worker Adjustment and Retraining Notification Act (WARN) notice confirming that the move will affect 13 sites in Newtown, 12 in Lucerne and 10 in Princeton, according to Reuters.
Go deeper with GlobalData
Murphy-Brown LLC, a division of Smithfield Foods, is reportedly “reducing its hog farming operations” across the state and “must reduce its workforce accordingly,” the company said in the notice.
The layoffs are “specific to our Missouri hog production [farm] operations,” a Smithfield spokesperson told Reuters on Monday.
The employees are set to be affected on 8 October, according to the notice. All employees have reportedly been offered relocation opportunities.
Just Food has contacted Smithfield for further details about the closures.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataChina’s WH Group, Smithfield’s owner, revealed earlier this year that its first-quarter operating profit dropped 43.1% to $365m while profit attributable to owners of the company decreased 55.9% to $174m.
Before announcing its results, WH Group said: “Hog raising costs remain elevated, while pork prices have been adversely impacted by softer consumer demand.”
Smithfield’s planned closures come shortly after Tyson Foods announced the closure of four chicken plants in the US – two in Missouri and one each in Arkansas and Indiana.
The meat processing major estimated total charges of $300m to $400m from the closures.
In a call with analysts after revealing the closures, Tyson said it could consider closing more plants as it continues to face pressures across its chicken, beef and pork operations.
