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

CHICAGO (Reuters) – Tyson Foods (NYSE:) will lay off 228 corporate employees in Illinois who declined to relocate to the meatpacker’s Arkansas headquarters, eliminating about 46% of the total staff from two offices, the company confirmed on Tuesday.

Employees have resisted a decision to consolidate corporate offices, which Tyson announced in October, as the company grapples with high costs for cattle and easing demand for meat from cash-strapped consumers.

Tyson 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.

The company said the layoffs were due to the consolidation of corporate offices to Springdale, Arkansas.

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.

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.