Major meat processor to close multiple production plants, laying off 2,000+ workers 

Another major shake-up is underway in the U.S. meat industry as one of the nation’s largest processors restructures its operations. The changes will affect thousands of workers across multiple states and highlight the mounting pressures reshaping America’s food manufacturing sector. 

Multi-state changes

JBS USA is making sweeping changes to its U.S. manufacturing network, announcing the closure of multiple facilities that will eliminate more than 2,000 jobs. The restructuring includes the shutdown of a beef processing plant in Souderton, Pennsylvania, a value-added beef facility in Memphis, Tennessee, and the partial closure of a Pilgrim’s Pride poultry operation in Chattanooga, Tennessee. 

The changes come as the meat industry grapples with a shrinking U.S. cattle supply and rising production costs.

More than 2,000 jobs affected

The largest impact will be felt in Souderton, where approximately 1,500 employees will lose their jobs when JBS closes its beef processing facility. Another 208 positions will be eliminated as the company shuts its Empire Packing value-added facility in Memphis, TN.  Meanwhile, JBS-owned Pilgrim’s Pride will lay off about 348 workers as it closes harvesting operations in Chattanooga, TN, although the site’s deboning facility will remain open. 

Production from the affected plants will be absorbed into other locations within the company’s network.

Investing while restructuring

Despite the closures, JBS says it continues to invest heavily in its U.S. operations. Pilgrim’s Pride plans to spend approximately $75 million expanding its poultry complex in Ellijay, Georgia, where harvesting operations from Chattanooga will be consolidated. JBS has also recently invested in facilities in Texas, Iowa and other locations as part of a broader strategy to modernize operations and expand value-added food production.

Cattle shortage driving change

Industry analysts say the restructuring reflects the challenges facing U.S. beef processors. The national cattle herd has fallen to its lowest level in decades after years of drought and high production costs, sending cattle prices to record highs and squeezing processor margins.