On Wednesday, CEO Donnie King said that Tyson Foods Inc. (TSN.N) would reduce 10% of corporate employment and 15% of senior leadership positions.
The largest U.S. meat manufacturer by sales is slashing costs again as it attempts to rebuild its famed chicken business.
According to a document seen by Reuters, King will meet with most impacted staff this week. Shares fell 1.1% to $60.35 on Wednesday.
“We will drive efficiency by focusing on fewer initiatives with greater intensity and removing duplication of work,” King added.
According to regulatory filings, Tyson employed 6,000 U.S. corporate employees on Oct. 1 and 118,000 at non-corporate sites, including meat facilities and warehouses.
A corporate spokeswoman stated senior vice presidents and vice presidents were generally dismissed.
Tyson said it would move all corporate employment to Springdale, Arkansas, in October. However, a spokeswoman stated the 10% decline in corporate employment was not attributable to staff leaving but moving to Arkansas.
Tyson’s top leadership change worried investors and analysts.
International business president Chris Langholz was sacked in August. Tyson’s prepared foods division head, Noelle O’Mara, quit in September. John R. Tyson, the founder’s great-grandson, became finance chief.
“The frequent leadership team changes over the past few years suggest that there are inefficiencies within the corporate offices,” said CFRA Research senior equities analyst Arun Sundaram.
After mispredicting chicken demand, Tyson fired its poultry president in January.
In March, the firm announced it would close two U.S. processing factories with over 1,700 people after years of poor chicken business performance.
During the epidemic, meatpackers paid plant workers more. Analysts said they must compete to obtain animals to run factories at full slaughtering capacity as operating margins decline.
“Margins fall apart like this and it’s like, we’re really bleeding now,” said independent cattle market specialist Bob Brown.
Tyson’s adjusted earnings of 85 cents per share in the quarter ended Dec. 31 dropped 70% from a year earlier. The next quarterly results are due on May 8.
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