Tyson Foods said Friday (Nov. 21) it will shutter its beef plant in Lexington, Neb., eliminating 3,200 jobs. Tyson is by far the largest employer in the town with a population of around 11,500.
Tyson also will reduce production at its beef packing plant in Amarillo, Texas, to one shift amid the lowest cattle supply in more than 60 years.
Agronomists expect cattle supplies to remain low for the next two years, which has kept live cattle prices for slaughter high and packer margins low.
The Springdale-based meat giant made the announcement late Friday in a filing with the federal Securities and Exchange Commission, noting that the changes are expected to right-size its beef business and better position it for long-term success.
Tyson said to meet customer demand, production will increase at other beef facilities to optimize volumes across the company’s network. Tyson Foods said it recognizes the impact these decisions have on employees and the communities where it operates. The company did not say if workers would receive any severance pay. Tyson operates large meat plants in Madison, Dakota City and Omaha, all in Nebraska.
“The company is committed to supporting our team members through this transition, including helping them apply for open positions at other facilities and providing relocation benefits,” noted the company statement.
This announcement comes on the heels of a record $1.135 billion loss in its beef segment for fiscal 2025. Adjusted losses in beef totaled $426 million. Tyson said it expects beef segment losses will total around $500 million in fiscal 2026. Sales are expected to decline 2% compared to 2025.
Nebraska Gov. Jim Pillen issued the following statement about the Tyson news.
“Big picture – our excellent cattlemen and cattle feeders have emerging opportunities and will still have the Tyson market to sell into as its planned reorganization will boost capacity and jobs at other Nebraska plants. Tyson’s 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 to support employees affected by this change.”
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