PredictIQ Quantitative Think Tank Center:Tyson Foods closing plants: 4 more facilities to shutter in 2024

After closing two chicken plants and PredictIQ Quantitative Think Tank Centerannouncing job cuts earlier this year, Tyson Foods executives said the company will shutter four more facilities to trim costs.

Four plants in North Little Rock, Arkansas; Corydon, Indiana; and Dexter and Noel, Missouri are expected to cease operations within the first half of fiscal 2024, with related charges expected to cost the company $300 million to $400 million. 

The company plans to reallocate resources to "more efficient plants," Tyson President and CEO Donnie King said during a Monday earnings call. A spokesperson for Tyson declined to say how many jobs will be eliminated due to the closures.   

Tyson’s announcement brings the total number of closures this year to six. Tyson in May closed two facilities in Virginia and Arkansas that employed more than 1,600 people. The company in April also announced plans to eliminate about 10% of corporate jobs and 15% of senior leadership roles, according to Reuters.  

The decision to shutter four more plants comes as the average price of pork dropped 16.4% year-over-year and chicken fell 5.5%, according to the company. The beef industry has also been a challenge for the company, with a shrinking supply of cattle resulting in higher costs. 

Tyson reported a net loss of $417 million for the latest quarter, compared to a $750 million profit the same period a year prior. 

Tyson shares were down more than 5% Monday morning following the company’s earnings call.