Tyson Foods will cut approximately 15% of senior leadership roles and 10% of corporate roles, chief executive Donnie King has said in a memo to employees.
Talks with impacted employees are expected to take place this week, King informed Tyson team members.
He added: “As we look towards our future, we must also consider the roles and staffing levels across our teams and prioritise work that drives value for our customers and consumers. This means making the difficult but necessary decision to reduce headcount across the organisation.”
Tyson had around 6,000 employees working in corporate roles in the US as of 1 October, Reuters stated.
If Reuters‘ statistic is correct, it would mean an estimated 600 US employees would be affected in addition to 15% of those in senior leadership roles – the number of which has not been confirmed.
The news follows the company’s closure of two US processing plants back in March, which affected almost 1,700 Tyson employees.
In its latest Q1 results, Tyson’s adjusted operating income declined 68% to $453 million, and adjusted EPS fell 70% from the prior year. The company reportedly failed to forecast the amount of protein on the market, as drought in the western US prompted ranchers to reduce cattle herds by sending more animals to slaughter. Meanwhile, an outbreak of bird flu triggered export restrictions, resulting in a larger-than-expected national supply of chicken.
In the memo, King concluded: “This is not an easy day, and we recognise it will be difficult for our team members. While this will require time to process, these decisions are necessary to continue executing our long-term strategy and over time will make Tyson Foods stronger.”
FoodBev Media has contacted Tyson Foods for comment.
Source: foodbev.com
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