Tyson Foods plans to lay off more than 1,700 shift workers at its beef processing plant in Amarillo, Texas, early next year as the U.S. meat industry faces tight cattle supplies and labor woes.  

According to a report filed with the Texas Workforce Commission, 1,761 employees will lose their jobs Jan. 20. Spokespeople for Springdale, Arkansas-based Tyson didn't immediately respond to a request for comment, but the company said last week it was converting operations at the plant to "a single, full-capacity shift."

Tyson also announced last week it would close a major beef plant in Lexington, Nebraska, in an effort to "right-size" operations. The midwestern slaughterhouse employs around 3,200 people and the cuts there, combined with those in Amarillo, will reduce U.S. beef processing capacity by 7% to 9%, an Associated Press report said. 

"To meet customer demand, production will be increased at other company beef facilities, optimizing volumes across our network," Tyson's news release said.

Don’t miss a beat! It’s easy to sign up for a FREE month of Agri-Pulse news! For the latest on what’s happening in Washington, D.C. and around the country in agriculture, just click here.

Tyson produces roughly a fifth of U.S. beef, pork and chicken. 

Americans have been feeling the pinch of record-high beef prices due to drought and the Trump administration's wide-ranging tariffs. Ranchers in the U.S. have the option to raise more cattle amid a current shortage, though many see no incentive to do so. The layoffs in Texas coincide with a U.S. crackdown on illegal immigration, especially at the southern border with Mexico. A significant portion of workers in the U.S. meat industry are believed to be undocumented immigrants.

In July, following a potential labor strike over the plant in Amarillo, Tyson reached a four-year agreement with a local Teamsters union that included a 32% wage increase, more paid time off, and additional retirement benefits. 

In 2022, Tyson Foods said it would invest $200 million to expand and upgrade the Amarillo operations, as well as build a "new team member well-being area." At the time, Tyson said the facility was one of the biggest of its six beef plants. 

For more news, go to Agri-Pulse.com.