With losses in its beef segment possibly reaching $650 million in fiscal year 2026, Tyson Foods on Thursday (Aug. 13) announced beef plant closures in Illinois and Utah that could result in the loss of more than 3,000 jobs.
The Joslin, Ill., beef plant employed around 2,500, and a Tyson case-ready plant in Eagle Mountain, Utah, was built to employ between 800 and 1,200. It was unknown Thursday how many jobs at Eagle Mountain would be lost. Springdale-based Tyson invested $300 million in 2019 to build the Eagle Mountain plant, saying at the time it would initially have 800 jobs with the capacity to expand to 1,200 jobs when fully operational.
“Tyson Foods is making strategic changes to its beef operations to position the company for long-term success,” the company noted in a statement issued Thursday afternoon. “Tyson Foods will anchor its beef business around three strategically located beef facilities in the central United States: Dakota City, Nebraska; Holcomb, Kansas and Amarillo, Texas, to create a more competitive footprint amidst one of the most historic cattle shortages the country has ever experienced.”
Continuing, the company noted: “The company will end operations at its Joslin, Illinois, beef facility and its Eagle Mountain, Utah, case-ready facility. Capacity from these locations will be moved to more strategically located facilities with ample capacity to grow. Additionally, Tyson Foods is pursuing the sale of its Pasco, Wash., beef facility. With these changes, the company will ramp back up a second shift at its Amarillo, Texas facility as cattle become available. Collectively, these changes will allow the company to maintain a similar level of cattle harvesting across a more efficient and modern network.”
Analysts with Little Rock-based Stephens Inc. estimated annual savings from the actions announced Thursday by Tyson to be between $100 million and $150 million.
U.S. Sens. Dick Durbin, D-Ill., and Tammy Duckworth, D-Ill., and U.S. Rep. Eric Sorensen, D-Rockford (Ill.) issued a statement about the Joslin plant closure.
“Today’s news is devastating for the 2,500 skilled union workers impacted by the closure of the Tyson plant in Joslin, especially at a time when American families are struggling with the rising cost of living,” noted part of their statement.
In the third fiscal quarter reported Aug. 8, Tyson’s beef segment revenue declined 3.9% with a 16% drop in volumes. Beef losses on an adjusted basis totaled $138 million, wider than the $116 million it lost a year ago. The company expects beef segment losses to range between $500 million and $650 million for the fiscal year. Overall, Tyson reported adjusted quarterly net income of 99 cents per share, better than 91 cents in the same quarter of the previous year, but below the consensus estimate of $1.01. Revenue totaled $13.868 billion, flat compared to a year ago.
In the recent full fiscal year, Tyson posted a record $1.135 billion loss in its beef segment. Adjusted losses in beef totaled $426 million. Losses are largely the result of a declining U.S. cattle herd, and higher consumer prices.
The company announced in November 2025 the closure of its beef plant in Lexington, Neb., eliminating 3,200 jobs. Tyson was by far the largest employer in the town with a population of around 11,500. At the time, Tyson also announced plans to reduce production at its beef packing plant in Amarillo, Texas, to one shift amid the lowest cattle supply in more than 60 years.
Tyson shares (NYSE: TSN) closed Thursday at $56.39, up 58 cents. The plant closures in Illinois and Utah were announced after the markets closed. During the past 52 weeks, the share price has ranged between $69.48 and $50.56.
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