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.