News of more job losses are looming over the Tyson Foods as they are closing their Chicago plant next fall. The closures will put 480 employees out of work and this location is not the only that will suffer from corporate closures. Companies are doing everything they can so “save” money and it’s no secret that payroll expenses are the largest expenditure an organization must meet. As unfortunate as it seems, when a company makes a major change or elects to close the two top reasons are Payroll and production. Regardless of the reasons to close, the only sufferers are the employees and their families.
Read more as reported by the Chicago Tribune:
Tyson Foods announced Thursday that it will close one its Chicago plants next year as it consolidates production at other facilities.
The shutdown of the facility at 4201 S. Ashland Ave., which will occur before Oct. 1, 2016, will mean the loss of 480 jobs.
The company also plans to close a pepperoni plant in Jefferson, Wis. The age of both facilities and the anticipated cost to renovate them was a factor in the decision, as was the distance of the Chicago plant from supplier facilities.
The Ashland Avenue plant makes prepared meals for the hospitality industry, among other clients, said Worth Sparkman, Tyson Foods spokesman. Items like tempura chicken, meatballs, crepes, omelets, soups, sauces and chicken cordon bleu are made there.
Sparkman said the facility is limited in its ability to meet changing demands but declined to provide additional details. “We may have a different type of product that can’t be produced there, but can be produced elsewhere,” said Sparkman, who declined to say what locations would absorb Chicago’s work.
The 480 jobs to be cut at the Chicago plant are mostly hourly, production-line jobs, Sparkman said. Tyson Foods bought the plant in 1994.
Tyson’s two other Chicago facilities, a plant at 3548 N. Kostner Ave., which makes steaks, and offices at 400 S. Jefferson St., will continue to operate, Sparkman said.
Closing the Jefferson, Wis., plant will mean the loss of an additional 400 jobs.
“We examined many options before we turned down this road,” Donnie King, president of North American operations for Tyson, said in a statement. “This affects the lives of our team members and their families, making it a very difficult decision. But after long and careful consideration, we’ve determined we can better serve our customers by shifting production and equipment to more modern and efficient locations.”
Source: Chicago Tribune