Tyson Foods says it will chop 10% of corporate workforce
Tyson Foods announced Wednesday the company will cut 15% of its senior leadership — mostly senior vice president and vice president roles — and 10% of its corporate jobs.
State of play: CEO Donnie King shared the news with employees from Springdale, Arkansas, in an emailed memo.
- Most workers affected will be notified this week, the memo said.
Context: Tyson has recently fallen short of analysts' expectations. The company struggled with increased costs related to fuel, labor and feed, along with lower profits as consumers shift their buying due to inflation.
By the numbers: The company's net income was down 60% in the fourth quarter of last year. It reported a 72% decline in profit for its first quarter of 2023.
- The company said in 2021 it would save $1 billion by 2024 through increasing output and improving efficiency of its labor-intensive operations.
- A company spokesperson told Axios via email that Tyson has made "notable progress" toward that target.
Of note: There are about 6,000 corporate jobs in the company — many in Northwest Arkansas.
Zoom out: Companies throughout the U.S. have announced layoffs in 2023, including Amazon, Dell, Microsoft and FedEx.
Between the lines: Wednesday's move marks the latest cost-cutting measure by Tyson Foods.
- In October, the company announced the shuttering of offices in Chicago and Dakota Dunes, South Dakota, saying it would move those corporate positions to Springdale.
- The company recently said it would close chicken processing plants in Van Buren, Arkansas, and Glen Allen, Virginia, cutting about 1,700 jobs.
Flashback: Tyson has shuffled senior leaders in recent months, notably naming the founder's great-grandson and chairman's son, John Randal Tyson, as its chief financial officer.
- John Randal Tyson was arrested for public intoxication and trespassing when he was found sleeping in a woman's bed whom he didn't know.
- He apologized and pleaded guilty. The company's board said they would continue to back him.
- The Wall Street Journal recently reported that some investors have lost some confidence in Tyson Foods following the gaffe with its CFO.
Disclosure: Reporter Worth Sparkman formerly worked at Tyson Foods.