US meat processing giant Tyson Foods has laid off 228 employees in Illinois who have chosen not to relocate to the company’s headquarters in Arkansas, around 500 miles away.
Some 177 employees from Tyson’s office in Chicago and 51 workers in Downers Grove, according to a WARN notice from the state of Illinois. Both offices had around 500 employees combined when Tyson first announced the transition to one corporate office last October.
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The New York-listed company said in a statement that its goal was to make the proposition of relocating as attractive and easy as possible while understanding that some may not be able to make the move.
It added: “For those who cannot move, we appreciate each of their many contributions. For those who have made the decision to move, we are extremely grateful and look forward to building the future of Tyson Foods together.
“We believe that bringing our team members together will facilitate more growth opportunities, foster closer collaboration, enhance team member agility and enhance faster decision making.”
When the meat group revealed it was forming a single corporate office at its current headquarters in Springdale, Arkansas, it also then announced that another office in Dakota Dunes, South Dakota will close on top of the two Illinois sites.
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By GlobalDataEarlier this month, Tyson confirmed the Dakota closure with circa 262 employees declining the choice to transfer.
Tyson is looking to cut costs and improve efficiency company-wide. The group reported a second-quarter loss in May amid pressure on margins and flat sales. The company acknowledged the results were “weaker than expected” and cut its forecast for annual sales.
Second-quarter sales stood at $13.13bn, compared to $13.11bn the previous year. The company reported an operating loss of $49m compared to a profit of $1.15bn a year earlier. Adjusted operating income for the first half of the fiscal year dropped 80% to $518m.
Also last month, CEO Donnie King stated that the company is “looking at every aspect” to “be the best version of Tyson”.
Speaking at the BMO Global Farm to Market Conference in May, King said: “That means to be operationally excellent, being our customers go to supplier, growing our value-added portfolio.
“We’re looking at those smaller, uncompetitive dated assets and [asking] how do you make them competitive?”
