Tyson Foods Inc. (TSN) will close an Oklahoma meat-processing plant in the company’s latest reaction to the meat industry’s slump.
The meat-processor’s results have been hurt in recent quarters on weak demand, partially due to restaurants’ woes, and hedging losses on falling prices. Pilgrim’s Pride Corp. (PGPDQ), its biggest chicken rival, filed for bankruptcy in December.
Internal tension at Tyson about how to navigate the meat-industry slump have led to changes at the helm, with former Chief Executive Leland Tollett taking back the reins on an interim basis in January.
The shutdown announced Friday is at a plant which produces luncheon meats and ham products. Output will be moved to other facilities and about 580 jobs will be lost starting in late May. A 2-cent restructuring charge will result from the move in the current quarter.
Tyson, which has some 107,000 employees, unlike some rivals hasn’t undertaken major production cuts.
Shares were down 2.2% at $9.71 in recent trading.