Hundreds of employees at the two largest Tyson Foods TSN Red Down Pointing Triangle companies are planning to leave next year as they consolidate their offices in northwest Arkansas, according to people familiar with the matter.
The largest U.S. meat supplier by revenue announced in October that it will close its offices in Chicago, Downers Grove, Illinois, and Dakota Dunes SD. Department of beef and pork. In total, about 1,000 employees work at these locations, according to the company.
Tyson gave workers until April 11th A decision will be made today on whether to move to the company’s headquarters in Springdale, Arkansas in early 2023. The company said the planned office closure is part of an effort to consolidate its employees into one location to improve collaboration and speed decision-making.
According to persons acquainted with the situation, almost three-quarters of the 500 workers at Tyson’s South Dakota office informed the firm that they would not relocate to Arkansas and that they meant to leave by the time the facility closes in mid-2023. According to the sources, more than 90% of the workers at Tyson’s Chicago headquarters have expressed a preference against moving.
Tyson Chief Executive Donnie King said in a statement, “I’m certain the plan we have in place assures business continuity and positions us for long-term success. “When we announced the consolidation of our corporate offices, we were aware that there would be a range of reactions.”
Among the planned retirements are key managers. On Tuesday, Tyson said Shane Miller, head of the beef and pork division, will be replaced by Brady Stewart, who previously served as a chief operating officer of pork giant Smithfield Foods, in early 2023. Stated.
Miller has told people he was thinking of leaving the company rather than moving for family reasons, according to a person familiar with the matter. Tyson said Tuesday that Stewart will work with his Miller to ensure a smooth transition.
Leah Andersen, a senior vice president of Tyson’s pork business, also plans to leave rather than relocate, according to people familiar with the matter. Andersen did not respond to a request for comment.
“With Melanie Bolden as Chief Growth Officer and Brady Stewart as Fresh Meat’s new Group President, Northwest Arkansas has proven its ability to attract world-class talent,” King said. Bolden’s hiring was announced earlier this month by Tyson, who previously served as chief marketing officer for Coca-Cola Co.’s North American division.
Tyson’s beef and pork division will account for nearly half of the company’s $53 billion in revenue in fiscal 2022. Many of our employees have been based in our South Dakota office since Tyson acquired meatpacker IBP Inc. for more than $3 billion in 2001, bringing decades of industry experience and connections. I’m here.
Tyson’s ready-to-eat division has operated primarily out of Chicago since Jimmy Dean’s 2014 deal to acquire Hillshire Brands, maker of his Park hot dogs, with sausages and balls.
The expected employee departures at the meat giant come amid recent reshuffles of several top management positions, including heads of prepared foods and international divisions.
It will also come at a time when beef profits are being squeezed. Consumer demand for premium beef is slowing, and a shrinking US cattle herd is pushing up the price that butchers pay ranchers. Tyson’s beef business was reported to have been profitable over the past two years. This is because understaffed facilities have scaled back production and strong consumer demand has pushed up the price of meat.
King told reporters in November following the company’s quarterly results that he hoped all employees at the office, which would be closed, would move to northwest Arkansas. King said in a call that management is actively recruiting employees to relocate, and those who are not will remain at the location until new employees can be hired and trained in Northwest Arkansas. He said he was being asked to do so.
The company offers retention bonuses to move certain employees or to keep them on the job long enough to train new hires in Arkansas, according to people familiar with the matter. It is said that there is As a result, the final number of employees in South Dakota and Illinois who ultimately chose to relocate to Arkansas by 2023 could change.
Tyson’s website says some of the company’s newly listed positions, including food safety managers, will require significant travel to South Dakota to learn the roles.
Tyson paid about $20 million last week for a Walmart building in Springdale, Arkansas. A call center to secure locations for employees to relocate to the area. Tyson said the building will house about 1,000 employees and plans to expand the company’s headquarters complex in Springdale will give it more space.