Major protein producer Tyson Foods is ending operations at one facility and reducing shifts at another effective January 20, in a move expected to lay off nearly 5,000 workers, a NewsNation report says.
Tyson first announced the facility changes in mid-November, noting the changes were “designed to right size its beef business and position it for long-term success.”
The company ended operations entirely Tuesday at a Lexington, Neb., beef facility, eliminating the jobs of all 3,212 employees in the town of about 11,000, NewsNation cites from a Nebraska Worker Adjustment & Retraining Notification (WARN) notice.
At a beef facility in Amarillo, Tex., Tyson on Tuesday converted its operation to a single, full-capacity shift, down from two shifts per an Associated Press report from the time of the announcement. This change eliminates an expected 1,761 jobs, NewsNation cites from a Texas WARN notice.
The cuts come after Tyson reported a $1.135 billion loss in its beef segment for fiscal year 2025, NewsNation says. These two changes could reduce beef processing capacity nationwide by 7-9%, the article cites from the November Associated Press report.
The Nebraska closure will have an estimated economic impact of about $3.3 billion, including direct and multiplier effects on the state’s economy, says an economic report from the University of Nebraska—Lincoln, cited by NewsNation. It will result in about 7,000 jobs lost in the state, including the 3,212 positions eliminated at the facility and additional jobs that support those workers across different sectors, the UNL report says.
Tyson will increase production at other beef facilities to optimize volumes across its network and meet customer demand, the company said in its initial announcement.
“Tyson Foods recognizes the impact these decisions have on team members and the communities where we operate. The company is committed to supporting our team members through this transition, including helping them apply for open positions at other facilities and providing relocation benefits,” the company said.
When KNWA/FOX24 reached out to Tyson about its plans for the plant, a Tyson spokesperson said the company “is currently assessing how we can repurpose the facility within our production network,” the NewsNation report notes.
