Tyson Foods Plans To Close Two Plants, Cut 880 Jobs

(RTTNews) - Tyson Foods Inc. (TSN) said that it plans to discontinue operations at two plants, as part of efforts to improve the overall performance of its prepared foods business. The decision will affect about 880 people, including about 480 at Chicago and about 400 at Jefferson.

The closings will enable Tyson Foods to use available production capacity at some of its other prepared foods facilities.

Both the pepperoni plant in Jefferson, Wisconsin and the Chicago, Illinois, facility, which makes prepared foods for the hospitality industry, are expected to cease operations during the second half of the company's fiscal year 2016, which ends October 1, 2016.

The decision will affect approximately 880 people, including about 480 at Chicago and about 400 at Jefferson. It's important to note that none of Tyson Foods' other Chicago facilities or offices are affected by this announcement.

According to Tyson Foods, the planned closures are due to a combination of factors including changing product needs, the age of both facilities and prohibitive cost of renovations, as well as the distance of the Chicago plant from its raw material supply base.

The company said affected workers will be encouraged to apply for openings within the company.

Tyson Foods bought the Chicago plant in 1994. At the time, it was privately owned and made meals exclusively for airlines. Tempura chicken, meatballs, crepes, omelets, soups, sauces and Chicken Cordon Bleu are currently produced there.

The Jefferson facility, which produces sliced pepperoni and ham for pizza toppings, as well as sliced pepperoni and salami for deli and foodservice applications, was part of Tyson Foods' acquisition of IBP, inc., in 2001.