Tyson Foods Inc TSN has reportedly opted to permanently close its pork facility in Perry, Iowa, as part of its ongoing efforts to streamline operations amid declining profits.
The closure underscores Tyson’s strategy to enhance operational efficiency, according to a report from Bloomberg.
The move follows a series of shutdowns across various plants over the past year, affecting thousands of jobs, the report added.
Tyson faced significant profit declines due to market factors, including an oversupply of chicken and pork.
Despite this, the company saw a profit turnaround in its pork division in the final quarter of the fiscal year, driven by increased volumes.
The report further noted that the Perry pork packing plant closure may impact approximately 1,200 employees, although Tyson has not confirmed the exact number.
The company is urging affected workers to consider other positions within Tyson and is collaborating with local authorities to provide support to those affected.
Price Action: TSN shares closed higher by 2.99% at $55.73 on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
