Tyson Foods will close an office in Huntsville, Alabama, that became part of its operation following Tyson’s 2018 acquisition of Keystone Foods.
The company plans to close the office beginning March 25, and the decision will affect 58 employees.
“All team members affected will be offered a severance package and may be able to relocate to other Tyson offices. We are also working with a third-party benefits provider to ensure all team members who chose not to relocate are connected to appropriate resources and assistance,” said a Tyson Foods spokesperson.
This decision follows shortly after 200 employees were laid off at a Tyson plant in Robards, Kentucky. Those employees were also offered relocation to plants in Tennessee.
The closing of the Huntsville office comes as part of the company’s productivity initiative to save $1 billion in the next three years. Tyson leadership announced in 2021 that the company would save this money through investing in artificial intelligence and predictive analytics. This investment would “increase yields, reduce labor costs and associated risks and ultimately deliver cumulative savings,” according to the Tyson website.
Tyson Foods, one the largest meat producers in the world, Keystone Foods for $2.16 billion in cash in 2018 in an effort to solidify its position as the largest broiler producer in the United States. At the time, Tyson produced 174.8 million pounds of chicken weekly in 2017. Before being purchased, Keystone produced 23.8 million pounds on a weekly basis. The acquisition set Tyson even further ahead of its competitors as the largest poultry producer in the U.S., and increased the company’s international presence.
