Tyson foods will close Nevada beef plant, lay off 4,900 total employees

Tyson Foods, Inc. announced November 21 that it would close its Lexington, Nebraska beef processing plant and permanently lay off its 3,200 employees. In the same statement, the food company also said it would go to one shift at its Amarillo, Texas, beef processing plant, laying off 1,700 more workers there.

The layoffs come as high beef prices, which President Trump has vowed to decrease, strain the supply of cattle. Dawson County and Lexington, its county seat, have populations of 24,111 and 10,348, respectively: The layoffs there represent about 13% of the county population and 30% of Lexington residents. According to Beef Magazine, the latest closures are part of a trend. The industry magazine reported Tyson closed its beef plant in Emporia, Kansas earlier this year and consolidated its operations into its Holcomb, Kansas plant.

According to Reuters, Tyson’s beef business is losing money. The meat manufacturer’s beef division lost $426 million in the year leading up to September 27.

The company did not offer a timeline for when the changes would take place: Tyson has yet to file Worker Adjustment and Retraining Notification (WARN) notices with either Nebraska or Texas: Under most mass layoff and plant closures, companies must submit public WARN notices to the state within 60 days of separating workers.

According to Tyson, production at beef countries elsewhere in the country will be increased at other locations “to meet customer demand.”

What people are saying

“Nebraska’s cattle industry is resilient and the envy of the world. And our workforce can outwork anybody,” said Gov. Jim Pillen of Nebraska. “Big picture – our excellent cattlemen and cattle feeders have emerging opportunities and will still have the Tyson market to sell into as its planned re-organization will boost capacity and jobs at other Nebraska plants. Tyson leadership has also promised to continue to work on future value-added opportunities here in the state. The state of Nebraska is ready to build for the future and do what it can do to support employees affected by this change.”

"I am extremely disappointed by this news from Tyson today,” said U.S. Senator Deb Fischer of Nebraska. “As the single largest employer in Lexington, Tyson’s announcement will have a devastating impact on a truly wonderful community, the region, and our state. Nebraskans are nothing if not resilient, and Lexington has a robust workforce. I hope their skill and experience will be sought after by other employers. Nebraska is the beef state, and we know better than anyone the highs and lows of the cattle market. It’s no secret that just a few years ago, packers like Tyson were making windfall profits while the rest of the industry was continuously in the red. As we head into the holiday season, I call on Tyson to do everything in its power to take care of the families affected by this short-sighted decision.

“The closure of the Tyson Foods beef plant in Lexington, Nebraska is a devastating blow to the hundreds of meatpacking workers who every day put in the hard, often unseen work of keeping America fed. While these workers were not members of UFCW, we stand with them. These men and women are the backbone of an industry that strengthens local economies and sustains our nation’s food supply," said Mark Lauritsen, Director of the Food Processing, Packing and Manufacturing Division and International VP at UFCW International. "Layoffs in towns like Lexington don’t just impact workers inside the plant. Families now face uncertainty and anxiety heading into the holiday season and small businesses will feel the strain as spending drops. When a company as large and as profitable as Tyson shuts down a facility like this, it is the community – not the corporation – that pays the biggest price.

“Lexington boasts a robust community of diligent and hard-working people with an entrepreneurial spirit,” said Clay Patton, VP of the Lexington Area Chamber of Commerce. “While today we may have lost a significant employer, we also have an opportunity as a community. We are ready and excited to welcome an employer who sees the same hard-working spirit that I see in our town."

“We are disappointed by Tyson’s decision to permanently close the Lexington beef processing facility – especially in light of today’s USDA data indicating that Nebraska cattle-on-feed inventories remain slightly above year-ago levels in spite of the ongoing cyclical tightness in overall U.S. cattle numbers,” read a statement from the Nebraska Cattlemen’s Association, a trade group for cattle farmers in the state. “We firmly believe there isn’t a better place to efficiently and economically raise cattle and produce beef than Nebraska. As this will have a profound impact on the community of Lexington and many cattle producers, we hope the plant will continue operations under new ownership."