Tyson Layoffs 2020: Why Is The Meat And Poultry Producer Cutting Jobs?

Tyson Foods (TSN) is reportedly cutting about 500 jobs as part of a restructuring effort that will primarily affect workers in Illinois and Arkansas.

The layoffs will mostly be made to corporate positions in Chicago and Springdale, Arkansas, where Tyson is headquartered as part of the company’s “ongoing financial fitness,” Tyson spokesman Gary Mickelson told the Chicago Tribune.

In a statement to the news outlet, Mickelson said, “It’s always difficult to eliminate jobs and we’re doing this only after careful consideration. We’ve already eliminated some of the positions and expect some others will be affected in the months ahead.”

Through the restructuring program, Tyson expects to save $55 million in fiscal 2020, and $65 million in fiscal 2021, with severance pay and other job cut costs anticipated to reach $44 million, the Tribune reported.

The news of the layoffs come as Tyson reported its Q1 earnings, which saw $10.8 billion in sales for the quarter, up 6% over last year. The company found that its beef and pork business exceeded expectations, but its poultry product sales were below expectations.

Shares of Tyson stock were up 0.37% as of 1:58 p.m. EST on Tuesday.