Tyson Foods, Inc. has announced in a press release that it plans to discontinue operations at two of its prepared foods plants that will affect approximately 880 people.
The meat processing company said that the closure is part of its efforts to improve the overall performance of its prepared foods business.
Tyson Foods said in the press release that it will be closing down its pepperoni plant in Jefferson, Wisconsin and Chicago, Illinois, which makes prepared foods for the hospitality industry.
About 480 people at its Chicago plant and 400 people at its Jefferson plant will be affected by the move.
Donnie King, the president of North American operations of Tyson Foods, said in the press release that they've looked at a lot of options before deciding to close down its plants.
"This affects the lives of our team members and their families, making it a very difficult decision," he said. "But after long and careful consideration, we've determined we can better serve our customers by shifting production and equipment to more modern and efficient locations."
Tyson Foods adds in the press release that the planned closures are due to a combination of several factors, which include changing product needs and the age of the both facilities.
The company also took into consideration the prohibitive cost of renovating the plants and the distance of the Chicago plant from its raw material supply base.
The Wall Street Journal adds that the closure of the plants comes as Tyson Foods continue to remake itself following the acquisition of Hillshire Brands Co. in 2014.
Tyson Foods announced in July 2014, shortly after the acquisition, that it will be closing three prepared foods plant.
The Wall Street Journal adds that Tyson Foods announced in August that it will be closing down its 400-person beef-processing plant in Iowa due to the declining herds of U.S. cattle.
The revenue growth of the company's prepared foods division has led Tyson Foods' top-line growth in recent quarters, due to the Hillshire acquisition.
Tyson Foods said in the press release that the two plants are expected to cease operations during the half of the company's fiscal year 2016, which will end on October 1, 2016.
Affected workers are encouraged to apply for other openings within the company.
Tyson Foods adds in the press release that they plan to work with state officials to ensure that affected employees are informed about unemployment benefits and potential re-training opportunities.
