Tyson Foods (NYSE:TSN) announced Wednesday it will cut about 10% of its corporate workforce, including 15% of senior leaders. What do you need to know about Tyson Foods layoffs?
Well, the Arkansas-based company is the latest company opting to lay off employees in the face of rising interest rates and waning demand. Indeed, Tyson’s latest move is seemingly an attempt to recoup profit in the face of higher costs related to fuel, labor and feed, combined with reduced demand for its offering of meats.
If you recall, the company reported net income fell 60% in Q4 of last year. In Q1 of this year, the company also announced a 72% drop in profit.
What else is going on with Tyson?
Tyson Food Layoffs Follow Office, Plant Closures
Today’s news shouldn’t exactly come as a surprise to those following the meat processing company. In October, Tyson announced plans to close offices in Chicago, Dakota Dunes and South Dakota, while maintaining the corporate roles would transition to its Springdale location.
Additionally, in March, the company revealed it would layoff 1,700 employees as part of the shutdown of two of its poultry plants, located in Arkansas and Virginia. “The current scale and inability to economically improve operations has led to the difficult decision to close the facilities,” Tyson said at the time.
Despite the news, Tyson stock is actually up today, in the green less than a percent heading into the afternoon. TSN stock is down about 4.5% year to date.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.