Tyson Foods Inc. of Springdale is closing two of its prepared food plants in Chicago and Wisconsin and laying off 880 workers, it announced late Thursday afternoon.
The affected plants are a pepperoni plant in Jefferson, Wisconsin, where 400 workers are being let go, and a plant in Chicago that makes prepared foods for the hospitality industry, where 480 are impacted.
Both closings will come in the second half of the company’s fiscal year 2016, which ends Oct. 1, 2016, the publicly traded meat processor said.
“We examined many options before we turned down this road,” said Donnie King, president of North American operations for Tyson, in a news release. “This affects the lives of our team members and their families, making it a very difficult decision. But after long and careful consideration, we’ve determined we can better serve our customers by shifting production and equipment to more modern and efficient locations.”
The company said the closings will enable it to use available production capacity at some of its other, more modern prepared foods facilities. In announcing the planned closings, it cited factors including changing product needs, the age of both facilities and prohibitive cost of renovations, as well as the distance of the Chicago plant from its raw material supply base.
Affected workers will be encouraged to apply for openings within the company, according to the release.
Tyson Foods bought the Chicago plant in 1994. Currently, it produces tempura chicken, meatballs, crepes, omelets, soups, sauces and Chicken Cordon Bleu. The Jefferson facility produces sliced pepperoni and ham for pizza toppings and sliced pepperoni and salami for deli and food-service applications, the company said.
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