Tyson Foods (TSN, Financial) plans to shut down its meat processing plant in Emporia, Kansas, by February, resulting in 809 layoffs. This move aims to address the beef industry's slump and reduce costs. The company has been closing several plants since last year as part of a broader transformation strategy. Despite a rebound in its chicken business, Tyson's beef segment remains pressured due to a significant beef shortage in the U.S.
Tyson's recent Q4 earnings exceeded expectations, driven by strong chicken demand as consumers seek more affordable meat alternatives. Lower corn and soybean prices have reduced feeding costs, further enhancing savings. The company forecasts a 22% increase in adjusted operating income for 2025, primarily fueled by its chicken and prepared foods businesses. Tyson's stock surged 11%, leading the S&P 500 index.
