Tyson cutting jobs; ‘process changes’ cited

In a statement released to media outlets Aug. 8, Tyson said, “Due to increasing demand, we are shifting production in our Wilkesboro, NC facility to support our Tyson fully cooked products. As a result of these process changes, fewer positions will be required in the facility. Our priority is to help team members impacted by this change, and we are working with them to offer other opportunities at Tyson Foods.”

Tyson didn’t respond to requests for additional information. Social media posts indicate that the Springdale, Ark.-based company  began telling people that their jobs are being cut around Aug. 8.

Local government officials said the change in production and related job cuts are occurring at the company’s fresh plant in its Wilkesboro complex. One local official said his understanding was that nearly 500 jobs at the fresh plant will be eliminated.

Other current employment opportunities cited in the Tyson statement apparently refer to job openings elsewhere at the Wilkesboro complex. These openings are believed to account for many of about 450 job opportunities in Wilkes included on the NCWorks website as of Aug. 8. Tyson employs about 2,500 people at the Wilkesboro complex.

David Rhoades, communications director for the N.C. Department of Commerce, said Tyson isn’t required to file a Worker Adjustment and Retraining Notification (referred to as a WARN notice) in this situation. This notice includes a public disclosure of the number of jobs being cut. Certain variables, including total number of people employed and number employed less than six months, determine if a WARN notice is required.

Rhoades said Tyson Foods informed his agency about the job cuts, but added that he didn’t know the number of jobs affected. Personnel from the NCWorks Career Center office in North Wilkesboro will be at the Tyson complex this coming week providing information to displaced workers.

Local officials said “shifting production” mentioned in the Tyson statement refers to conversion of the fresh plant in the Wilkesboro complex to a bulk processing facility. They said this means chicken will be processed at the fresh plant to the point where its ready to be shipped to Tyson facilities elsewhere for further processing and packaging for retail sale or other purposes.

The fresh plant in Wilkesboro currently produces and packages fresh chicken products for retail sale in supermarkets and club stores, as well as chicken for fast food restaurants.

Top Tyson officials said about a year ago that Tyson planned to shift chicken production to its newer and more efficient facilities nearer to customers as it closed processing facilities in 2023 and early 2024.

They didn’t say where production would be shifted, but there has been speculation in the media that processing facilities in Danville, Va., and New Holland, Penn., were among places where it would be increased.

Wilkes was in the running for a new Tyson processing complex that instead was built in Danville, Va., and opened in late 2023. Tyson operates about 180 chicken processing facilities in the U.S.

Wilkesboro Town Manager Ken Noland said a Tyson government affairs official told him that Tyson’s shift in production in the Wilkesboro complex wouldn’t cause a reduction in overall volume of chicken processed there nor decrease chicken production on Tyson contract farms in Wilkes, Alexander and other counties for the complex.

With funding from the state, the Town of Wilkesboro is in the midst of expanding capacity of its wastewater treatment plant from 2.4 million gallons per day to 8 million gallons per day at a cost of $72 million so Tyson can process more chickens at its local complex. The plant is now operating at capacity, with Tyson accounting for about 70% of wastewater treated.

Wilkes Economic Development Director LeeAnn Nixon said that based on what she learned from Tyson and other sources, she believes “we are blessed that Tyson is maintaining its positive impact on agriculture and utilities (purchaser of Wilkesboro water and wastewater treatment)” while making adjustments to help remain its strong presence

Nixon said she believes the shift in production at the fresh plant will have a minimal impact on local companies that do business with the Tyson complex here. She said this is partly because they do business with Tyson at other locations and also because of their diversification.

Manufacturers in Wilkesboro that sell products to Tyson include InterFlex Group, which produces flexible packaging, and Worldwide Protective Products, which makes cut resistant gloves.

“We are thankful that Tyson is a major employer here and has such an impact on our economy, including agriculture,” said Nixon. She noted the opportunities available elsewhere locally with Tyson for people losing jobs at the fresh plant.

In 2023, Tyson cited a goal of reducing operational costs by $1 billion between 2022 and 2024. In late September 2023, the company announced plans to lay off about 250 employees at the Wilkesboro complex. It later became evident that the majority of these workers lived outside of Wilkes.