Tyson Foods lays off 400 in Denison

Tyson Foods announced Friday that is plans to cut 400 jobs at its plant in Denison.

The employees affected will be able to apply for jobs at other Tyson locations, the company said. Steve Stouffer, president of Tyson Fresh Meats, said, “However, the realities of the beef business have changed and we must continue to change with it to remain successful”.

There is too much beef production capacity in the region and cattle supplies remain low, the company said.

Only a rendering system, employing about 20 people, will continue running at the plant, 70 miles northeast of Omaha.

Tyson said eligible workers losing their jobs will receive 60 days of pay. Opened in 1961, it was the birthplace of Iowa Beef Packers, later known as IBP inc., which revolutionized the meatpacking industry. In its last fiscal year, Tyson’s beef business processed fewer cattle than it had the year before, and it was the only Tyson Foods division that didn’t report an increase in sales volume.

Financial incentives are also being offered to hourly workers who qualify for production openings at Tyson’s Lexington, Nebraska plant. Tyson’s other beef plants are located in Amarillo, Texas; Dakota City, Neb.; Finney County, Kan.; Joslin, Ill.; Lexington, Neb. and Pasco, Wash. The company now has approximately 113,000 Team Members employed at more than 400 facilities and offices in the United States and around the world.

A number of years of drought conditions in the southern plains of the U.S. have forced cattle ranchers to reduce their herds of beef leaving the meatpacker with less animals for processing. Denison was the only “slaughter-only” facility.

Analysts peppered Smith with questions on the beef segment during the August. 3 earnings call.

Roger Preul, chairman of the Denison Community Housing Agency, said if workers begin to leave the area to seek employment elsewhere, the housing market in Denison could suffer greatly. “Nobody knows what to expect”. In 2012, school officials estimated that about 130 students had a parent or two working at Tyson.

Bonner said the main focus now is to ensure the impact is curbed and corrected as fast and efficiently as possible.

“This was a very, very hard decision and not one that was made lightly”, Mickelson said.