Tyson Foods has approved a restructuring program, which includes the elimination of about 500 jobs.
The restructuring program was approved in the first quarter of fiscal year 2020, and it was announced in a filing with the U.S. Securities and Exchange Commission (SEC) on February 6.
According to the filing, the job cuts will be made “across several areas and job levels, with most of the eliminated positions originating from the corporate offices in Springdale, Arkansas, and Chicago, Illinois.”
Tyson Foods, in its filing, recognized restructuring and related charges of $52 million for the three months ended December 28, 2019, including $44 million in severance and employee related costs. However, the company stated it does not anticipate costs related to the restructuring program to be significant.
“We have an ongoing focus on financial fitness to make sure our business remains competitive,” Tyson Foods spokesman Gary Mickelson said of the restructuring and job cuts. “This means we’re continually reviewing our resources including staffing levels. We’ve recently reduced some roles and relocated others. It’s always difficult to eliminate and move jobs, and we’re doing this only after careful consideration.”
The SEC filing was made the same day Tyson Foods announced the financial results for the first quarter of fiscal year 2020. For the quarter, the company reported a net income of $561 million.
Tyson Foods, according to the WATTAgNet Top Poultry Companies Database, is the largest broiler company in the United States and the second largest in the world. It also ranks ninth globally as a producer of animal feed, and fifth in the United States as a turkey producer.
The company is currently in the process of building a new poultry plant in Humboldt, Tennessee, and a Tyson Fresh Meats plant in Eagle Mountain City, Utah. It is also expanding facilities in Caseyville, Illinois and Hutchinson, Kansas.
