Tyson Foods Layoff Count in California Hits 590, Part of $150M Restructuring Costs

Tyson Foods Layoffs

Tyson Foods, Inc. (NYSE:TSN), a food processing company, has announced layoffs for 2018. Tyson Foods’ WARN notices state that the company intends to lay off a combined 590 employees in San Diego. Three of these California layoffs have already taken place, affecting 53, 17, and 40 employees on January 2, January 15, and February 12, respectively. The first two were permanent layoffs, while the last was due to a permanent closure.

The other two Tyson Foods layoffs in 2018 will see 79 let go on March 16 and 401 receiving a pink slip on April 15. The former will be a permanent layoff, while the latter is due to a permanent closure.

Tyson Foods’ Plan of Cutting 450 Jobs in 2017

On September 28, 2017, Springdale-based Tyson Foods confirmed to be reducing workforce by approximately 450 positions across several areas and at various job levels. These job cuts were planned as part of company’s goal to have a leaner operation while focusing on growing profits. Tom Hayes, Tyson Foods’ chief executive officer, said that most of the job cuts are set to occur at corporate offices in Chicago, Cincinnati, and Springdale.

Following the acquisition of AdvancePierre Foods Holdings Inc. in June, the company expects cumulative net savings of $200.0 million, $400.0 million, and $600.0 million over fiscal years 2018, 2019, and 2020, respectively. This will add to job cuts and non-value-added costs relating the companies’ synergies, mostly affecting the prepared foods and chicken segments.


“We’re grateful to everyone who has contributed to the company’s success, and we’re thankful for their time with Tyson Foods,” Hayes said. These are hard decisions, but I believe our customers and consumers will benefit from our more agile, responsive organization as we grow our business through differentiated capabilities, deliver ongoing financial fitness through continuous improvement and sustain our company and our world for future generations.”

These layoffs were expected because the company had made similar reductions when it acquired Hillshire Brands. Hayes said at that time that some jobs were moved from Springdale to Chicago as a part of the restructuring of Tyson’s marketing sector. In August, the management team was also trimmed ahead of the Q3 earnings announcement. Two top executives, Andy Callahan, president of North American Foodservice and International, and chief growth officer Monica McGurk were fired in August.

In its fiscal Q4 earnings report, Tyson Foods reported restructuring and other charges of $150.0 million, of which $50.0 million was employee termination costs. Tyson Foods layoffs planned in 2017 were the part of company’s “Financial Fitness” plan.

“We are creating momentum behind our continuous improvement agenda as we know we can be even more efficient operators.” Hayes said. “We are a good partner for growth for our customers and are constantly challenging ourselves to identify opportunities to create value for our consumers, customers and shareowners.”



Tyson Foods to Cut 450 Jobs, Discusses Future Plans, Food Processing, October 05, 2017.

WARN Report,” State of California Employment Development Department, last accessed February 28, 2018.

Tyson Foods reducing corporate headcount by 450, raises earnings guidance,  Talk Business & Politics, last accessed February 28, 2018.

Supplemental Information – 4th Quarter Fiscal 2017,” Tyson Foods, Inc., November 13, 2017.