SPRINGDALE, ARK. – Tyson Foods, Inc. is cutting 500 jobs, mostly in the corporate offices in Springdale and Chicago, according to a filing with the U.S. Securities and Exchange Commission (S.E.C.) for the quarter ended Dec. 28, 2019.
“We have an ongoing focus on financial fitness to make sure our business remains competitive,” Gary Mickelson, spokesperson for Tyson Foods, told Meat + Poultry, a sister publication of Food Business News. “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 S.E.C. filing included a restructuring charge of $44 million for severances and other costs associated with the planned job cuts.
For the first quarter ended Dec. 28, 2019, Tyson Foods earned $557 million, equal to $1.56 per share on the common stock, up from $551 million, or $1.54 per share, in the same period a year ago.
Sales for the quarter ticked up to $10,815 million from $10,193 the year prior.
“Our overall results in the first quarter of fiscal 2020 were in line with expectations,” said Noel W. White, chief executive officer. “Our Beef and Pork segments performed well as the effects of African swine fever are beginning to materialize. Our Chicken segment performed better operationally, although in a soft pricing environment. Our Prepared Foods segment produced its sixth consecutive quarter of retail consumption growth, demonstrating the strength of our brands and innovation as we grew or held market share in all core categories.
“With improved access to global markets resulting from recent trade developments, there are reasons to be optimistic about fiscal 2020 and beyond and we are well-positioned to capitalize on opportunities in the global marketplace. Although we anticipate the challenges and volatility typical in our second fiscal quarter, our long-term outlook remains positive.”