Tyson Foods to lay off 228 employees near Chicago who decline move to Arkansas

CHICAGO (Reuters) – Tyson Foods (NYSE:), which is seeking to cut costs, will lay off 228 corporate employees in Illinois who declined to relocate to the meatpacker’s Arkansas headquarters, the company confirmed on Tuesday.

Tyson said it will eliminate 177 employees from an office in downtown Chicago and 51 employees in suburban Downers Grove, Illinois, starting on July 31, according to the state.

The offices had roughly 500 employees overall as of last October, when Tyson announced a decision to consolidate corporate offices. Employees resisted and some have already left for jobs with other companies, as Tyson has grappled with high prices to buy cattle for slaughtering and easing demand for meat from cash-strapped consumers.

The 228 being laid off are those remaining with the company until the Chicago and Downers Grove offices close, Tyson said.

“Those impacted were due to the consolidation of corporate offices,” the company said.

Including layoffs at another office in Dakota Dunes, South Dakota, Tyson will eliminate about 490 corporate employees who opted not to relocate, out of roughly 1,000 workers.

Tyson has said moving employees to its Springdale, Arkansas, headquarters will benefit collaboration and decision making.

The company separately closed two U.S. chicken plants with almost 1,700 workers this year and said in April it would eliminate about 10% of corporate jobs and 15% of senior leadership roles.

As of Oct. 1, Tyson had about 124,000 U.S. employees, including 118,000 working in non-corporate sites like production plants, according to regulatory filings.