Tyson Foods Inc. of Springdale said it would eliminate about 500 jobs as part of a 2020 restructuring plan.
The company said in an SEC filing that the jobs affected would be mainly at corporate offices in Springdale and Chicago and would be from a variety of segments and job levels. Tyson said the job eliminations resulted in a $44 million pretax charge for the first quarter of fiscal 2020 because of severance costs.
"We have an ongoing focus on financial fitness to make sure our business remains competitive," Tyson spokesman Gary Mickelson said in an emailed statement. "This means we're continually reviewing our resources including staffing levels. We've recently reduced some roles and relocated others. It's always difficult to eliminate and move jobs, and we’re doing this only after careful consideration.
"The affected jobs cover a variety of roles and most involve the corporate offices in Springdale and Chicago."
Tyson said the 2020 restructuring is a continuation of an initiative that started in 2017 to reduce overhead and increase efficiency. Tyson said that 2017 program is expected to cost $280 million through severance pay and other costs, of which $258 million has been charged.
Tyson said the 2020 program is not expected to have any more significant costs after the $44 million charge.
Last week, the publicly traded meat processor reported first-quarter net income of $561 million, up 1.6% from the same quarter last year.
