Tyson Foods Slashes 3,200 Jobs as US Cattle Herd Drops to 75-Year Low in Historic Beef Crisis

Meat processing giant Tyson Foods has announced plans to cut roughly 3,200 jobs as it closes two major beef facilities in Illinois and Utah amid a national cattle shortage that has battered the beef processing industry.

The news came after the United States Department of Agriculture (USDA) reported that the domestic cattle herd had fallen to 86.2 million head as of 1 January 2026, near its lowest level in 75 years.

Thousands Face Job Losses as Meatpacking Plants Close

Executives from the Springdale-based conglomerate submitted formal regulatory notices on 13 August detailing the planned layoff of approximately 2,500 workers at its Joslin facility in Illinois.

A separate compliance filing submitted to the Utah Department of Workforce Services confirmed that a further 723 staff members would lose their jobs at the Eagle Mountain beef facility.

Employees at the Utah site will reportedly continue to receive their standard pay until 12 October, which the company expects will serve as the final official day of commercial operations.

The company also announced plans to sell a third beef processing plant located in Pasco, Washington, opting to seek a buyer rather than close the facility. Tyson said it would consolidate its beef operations around facilities in Nebraska, Kansas and Texas.

National Cattlemen's Beef Association chief executive Colin Woodall released a public statement expressing concern over how the closure could affect the Midwest supply chain.

'For many years, the plant has played a vital role in the Midwest beef supply chain, and its closure will significantly impact cattle producers, employees, and rural communities across the region,' Woodall stated.

He encouraged Tyson to help its longstanding agricultural customers find alternative markets for their livestock.

Strategic Retreat or Corporate Consolidation

Tyson is restructuring its beef operations around three remaining core facilities located in Nebraska, Kansas and Texas. Corporate leadership said the geographic restructuring would create a more competitive operating footprint as the industry contends with historically tight cattle supplies.

Recent government inventory data suggests cattle supplies could remain constrained, although USDA's July figures showed the overall US cattle inventory had edged slightly higher from a year earlier.

The agricultural giant said it plans to shift production to its remaining plants and could restore a second operating shift at its Amarillo location as cattle availability improves.

Staff affected by the closures may apply for open positions at other Tyson sites across the country, though relocation could present significant challenges for affected families.

The restructuring follows other major changes to Tyson's beef operations. The company previously announced the closure of its Lexington, Nebraska, beef plant, affecting roughly 3,200 workers, alongside a reduction to a single shift at its Amarillo, Texas, facility.

That earlier restructuring did not involve nearly 5,000 employees or a Tyson plant closure in Georgia, as initially stated. Woodall noted that these developments highlight the impact of historically low livestock inventories while stressing the need to rebuild the domestic cow herd.

A Wider Industry Strain

The underlying supply crisis is not confined exclusively to Tyson and its portfolio of brands, which includes Jimmy Dean and Hillshire Farm. Competitor JBS Foods also permanently closed a Swift Beef Co. processing facility in Riverside, California, on 2 February 2026.

That decision resulted in 374 employees losing their jobs, according to a Worker Adjustment and Retraining Notification filed with California authorities.

The Swift facility prepared case-ready beef products for retail customers but did not slaughter cattle on-site. JBS said the closure was part of a broader initiative to streamline its value-added and case-ready operations, rather than specifically attributing the decision to cattle shortages.

The closures underscore the pressure facing US beef processors as historically tight cattle supplies push livestock costs higher and squeeze processing margins.

Tyson's beef division recorded a $142 million (£105 million) operating loss in its latest quarter and expects losses of between $500 million (£370 million) and $650 million (£480 million) for fiscal 2026.

For communities surrounding the Joslin and Eagle Mountain facilities, however, the immediate consequence is employment. More than 3,200 positions are expected to disappear as Tyson concentrates production at fewer plants.

Tyson said it would work with affected employees and provide opportunities to apply for positions elsewhere in its network, while its longer-term recovery will depend partly on when US cattle supplies begin to rebuild.