Tyson Foods Inc (NYSE: TSN) will reportedly close two chicken plants in May, affecting nearly 1,700 employees. Demand will be shifted to other Tyson facilities.
Tyson will shut down a plant in Glen Allen, Virginia, with around 700 employees, and a plant in Van Buren, Arkansas, with nearly 1,000 employees.
The company said the closures were part of a broader plan in its chicken division to improve operations and use full available capacity at each plant.
“The current scale and inability to economically improve operations has led to the difficult decision to close the facilities,” a company spokesman said.
The Wall Street Journal first reported the upcoming closures.
In its latest quarter, Tyson’s chicken operating income almost halved from $140 million to $69 million amid increased pressure as the company’s profit margins fell from historic highs during the pandemic.
Wall Street Journal report notes that chicken prices have fallen sharply in recent months as processors increase supply.
Boneless, skinless breast meat prices fell from $3.50 in May of last year to about $1 by January, according to research firm Urner Barry, squeezing profits for companies.
Price Action: TSN shares are down 1.12% at $56.66 during the premarket session on the last check Wednesday.
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This article Tyson To Shutter Two US Chicken Plants Employing Almost 1.7K Workers originally appeared on Benzinga.com
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