US meat group Smithfield Foods is to revamp its pork processing operations with a series of moves including the closure of six plants and the possible loss of almost 1,800 jobs.
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The company today (18 February) unveiled plans to streamline its pork business in a bid to make it more competitive.
Smithfield said facilities in Virginia, Florida, North Carolina, Kansas, Ohio and Nebraska would close, leading to the loss of up to 1,795 jobs.
“Wherever possible, Smithfield Foods will offer transfers to other company facilities to an undetermined number of employees,” the company said.
One initiative is to offer the majority of workers at the company’s Smithfield Packing Company South facility in Virginia jobs at a second site in the state and at a facility in North Carolina.
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By GlobalDataUnder the plans, Smithfield also plans to merge fresh pork sales teams at its John Morrell & Co. and Farmland Foods subsidiaries.
“Lay-offs and plant closings are difficult but necessary decisions,” said Smithfield president and CEO Larry Pope.
For the second quarter to 26 October, Smithfield saw profits from its pork business rise from US$62.9m to $93.4m, thanks to a jump in export sales.
At the time of the announcement, Pope said Smithfield’s pork business had “performed exceptionally well” despite a 15% rise in raw material costs.
Fresh pork margins, Pope said, were at “record high levels”.
