Tyson Foods on Monday said it will close a pork plant in Perry, Iowa, which will result in the loss of 1,276 manufacturing jobs.
“While this decision was not easy, it emphasizes our focus to optimize the efficiency of our operations to best serve our customers,” a Tyson spokesperson said in a statement to Food Dive. “Iowa remains a key state for Tyson Foods, with employment of more than 9,000 team members across our other Iowa facilities.”
The mayor of nearby Des Moines, Dirk Cavanaugh, said the plant is set to close on June 28, Reuters reported.
The spokesperson added that Tyson is working with Iowa officials to provide resources to the affected employees. It encouraged workers to apply at roles elsewhere in the company.
The Iowa closure comes after a volatile period for the company’s pork business, which has struggled with high grain costs but has shown recent signs of improvement. In Tyson’s earnings call last month, CEO Donnie King said a larger supply of hogs is improving its pork margins over last year.
The broader meat category is facing a challenging environment as consumer demand softens due to high prices. Companies such as Tyson, Smithfield Foods and JBS Foods have offset losses by cutting costs within their operations.
Since the beginning of last year, Tyson alone has announced the closure of eight facilities — including six chicken plants and two case-ready meat processing plants — as it works to boost efficiency through its manufacturing capabilities. The Perry, Iowa, location would be its ninth.
Despite the recent closures, Tyson is investing in other areas of its business where it sees higher growth potential. In January, the meat and poultry company opened a $355 million automated bacon processing plant in Bowling Green, Kentucky.
