SPRINGDALE, Ark. – In a filing with the US Securities and Exchange Commission (SEC) for the quarter ended Dec. 28, 2019, Tyson Foods Inc. reported it will cut 500 jobs, mostly in the corporate offices in Springdale, Arkansas and Chicago.
The company reported sales of $10.82 billion for Q4 2019, which was a 6 percent increase over the previous year. The company also reported net income of $557 million, a 1.6 percent increase over 2018’s last quarter.
Tyson spokesman Gary Mickelson told MEATPOULTRY.com, “We have an ongoing focus on financial fitness to make sure our business remains competitive. This means we’re continually reviewing our resources including staffing levels. We’ve recently reduced some roles and relocated others. It’s always difficult to eliminate and move jobs, and we’re doing this only after careful consideration.”
The SEC filing included a restructuring charge of $44 million for severances and other costs associated with the planned job cuts.
The company reported on Feb. 6 that its first quarter 2020 results were consistent with expectations. For the first quarter ended Dec. 28, 2019, Tyson Foods earned $557 million, equal to $1.56 per share on the common stock, up from $551 million, or $1.54 per share, in the same period a year ago.
Sales for the quarter ticked up to $10.82 billion from $10.19 billion the year prior.
“Our overall results in the first quarter of fiscal 2020 were in line with expectations,” said Noel White, Tyson Foods’ CEO. “Our Beef and Pork segments performed well as the effects of African Swine Fever are beginning to materialize. Our Chicken segment performed better operationally, although in a soft pricing environment. Our Prepared Foods segment produced its sixth consecutive quarter of retail consumption growth, demonstrating the strength of our brands and innovation as we grew or held market share in all core categories.
“With improved access to global markets resulting from recent trade developments, there are reasons to be optimistic about fiscal 2020 and beyond and we are well-positioned to capitalize on opportunities in the global marketplace. Although we anticipate the challenges and volatility typical in our second fiscal quarter, our long-term outlook remains positive.”