Earlier this year, Tyson Foods Inc.’s Chief Executive Officer Donnie King announced plans to cut 10 percent of corporate jobs, and 15 percent of senior leadership positions.
According to Reuters, the layoffs are the company’s latest cost-cutting strategy as Tyson deals with profit struggles.
The plans to let go of 228 corporate workers in its two Illinois offices came after Tyson reported second-quarter FY23 losses while shares dropped. The report includes a $97 million loss, versus the second quarter of 2022 where the company had an $829 million profit.
According to the company’s May 26 Worker Adjustment and Retraining Notification (WARN) notice, layoffs will begin July 31 and will conclude Aug. 14. The workers were offered transfers to the company’s headquarters in Arkansas. In the letter, Tyson’s Vice President of Human Resources Jamiso Smith reportedly said that employees who choose not to move will be eligible for severance packages.
In the May 26 letter announcing the layoffs, Smith said the company “is on a journey to build a more unified and efficient company.”
The list of impacted positions is extensive: from janitors and engineers to accountants and administrators, various vice presidents, senior directors, and chaplains.
“All affected team members were offered the opportunity to move to Springdale, but many team members have chosen not to make the move,” Smith said in the letter. “We respect this personal and difficult decision made by each individual and want to ensure they receive as much support as possible as they transition in their careers.”
Additionally, Tyson plans to lay off an additional 262 corporate personnel, including another set of workers who wouldn’t relocate from its office in Dakota Dunes, South Dakota.
To say that Tyson seems to be struggling may be an understatement. In January, the company replaced its poultry business president after demands for chicken weakened significantly and chicken supplies outweighed domestic demand. The company also closed two U.S. chicken plants in April.
Last year, the Illinois offices had roughly 500 employees while South Dakota’s office had around 1,000 workers. Back in April, Tyson had about 124,000 U.S. employees including 118,000 workers at noncorporate meat plants and warehouses.
»Related: Tyson Foods rebukes N.Y. subpoena in price-fixing inquiry
