Tyson Foods Inc. of Springdale (NYSE: TSN) announced Friday that it would close a beef production plant in Nebraska and scale back operations at one in Texas.
Tyson Foods’ short news release did not have details or comments from company officials. A spokesperson said 3,200 were employed at the plant in Lexington, Nebraska, and 1,700 would be laid off at the one in Amarillo as it reduces to one shift of operations.
The changes are scheduled to go into effect Jan. 20, the spokesperson said.
In the news release, Tyson Foods said the changes were “designed to right size its beef business and position it for long-term success.”
The beef segment has weighed on Tyson Foods in the past two years. Just this past month, the company reported its beef segment had lost $1.1 billion in operating income in fiscal 2025, after losing $381 million in 2024.
The USDA projects domestic beef production to drop 2% in 2026, and Tyson Foods said in its earnings report it projects it will lose between $400 million and $600 million in operating income in beef in the coming year.
Tyson Foods said production will be shifted to other plants in its network to cover for the Nebraska closure and the Texas layoffs.
“Tyson Foods recognizes the impact these decisions have on team members and the communities where we operate,” the news release said. “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.”
U.S. Sen. Deb Fischer (R-Nebraska), a member of the Senate’s Agriculture Committee, criticized Tyson Foods’ decision in a released statement.
“I am extremely disappointed by this news from Tyson today,” Fischer said. “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.”
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