US poultry group Perdue Farms plans to permanently shut down a factory in Monterey, Tennessee, resulting in the loss of hundreds of jobs.
The closure, slated for 28 March, follows a "thorough strategic business and financial review of the plant’s performance and its future viability", the family-owned company said in a statement.
Perdue Farms explained: "This decision comes as part of the company’s overall focus on continuous improvement and modernisation of its supply chain to meet evolving consumer demands and operational needs.
"Changes in market demand and how the company produces and supplies its products have impacted the Monterey facility in recent years. Addressing these challenges would require substantial additional investments to maintain operations."
Some 433 employees will lose their jobs when the site closes in March.
To support the affected staff, Perdue Farms said it will offer severance packages, including extended WARN protections, "additional severance pay beyond the standard compensation", and assistance in finding new work.
Calling the plant closure “incredibly difficult”, Perdue Farms' CEO Kevin McAdams said the step is “necessary to ensure Perdue remains fit for the future”.
He added: "We must make challenging choices today to continue to serve our customers and consumers effectively, and to continue to grow our company."
The demise of the Monterey factory follows another in October 2023, when Perdue Farms said it would closed a meat facility in Michigan with the loss of 132 jobs.
Despite the shuttering of the Monterey site, the poultry group said its relationships with farmer suppliers would not be affected.
Looking ahead, McAdams said: “Aligned with our vision to be the most-trusted name in food and agricultural products, we will continue prioritising strategic investments that support innovation, sustainability and long-term profitable growth.”
Last week, Perdue Farms reached an agreement with the US government to support projects aimed at combatting child labour.
The $4m indirect settlement with the Department of Labor (DoL) followed an investigation by the US government office into the alleged employment of underage workers by a third-party contractor at Perdue Farms factory in Accomac, Virginia, between 2020 and 2023.
