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update:Jul 17, 2006
Tyson cuts budget and jobs
Tyson
Foods will implement approximately $200 million in cost reductions, including
cutting 850 jobs, as part of a strategy to return to
profitability.
The 850 jobs include 420 which are currently filled and 430 that are
currently open.
The 420 filled positions are primarily held by
management and management support team members. Tyson says all affected employees will be
offered severance payments and outplacement assistance, and be given an
opportunity to apply for other jobs in the company. Hourly plant production jobs
are not affected by this initiative.
Savings will also be generated
from reductions in consulting fees, sales related expenses and supplies, as well
as travel.
"This has been a difficult process, especially since it
involves the displacement of some of our team members," said the company's new
CEO Richard Bond. "However, we would not be doing this unless we believed it was
absolutely necessary."
The process of notifying employees whose
positions have currently been identified has begun. Jobs being eliminated
include approximately 140 positions in northwest Arkansas and 90 in Dakota
Dunes, South Dakota and Dakota City, Nebraska. The remaining positions are at
various locations throughout the company. The company is also eliminating the
services of 40 outside consultants.
Tyson's senior management team
recently decided to delay annual merit increases for qualified management and
management support Team Members from July 2006 to January 2007. The company has
also temporarily suspended the company match on the Stock Purchase Plan for
salaried management Team Members for the remainder of
2006.
Editor WorldPoultry
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