Tyson tightens its belt to regain profitability
Jul 14, 2006 9:03 AM, from staff and wire reports
Tyson Foods Inc will implement about $200 million in cost reductions as part of a strategy to return to profitability. The reductions exceed the $110 million goal set by Richard L Bond, the Springdale AR-based meat company's new chief executive officer, and include the elimination of some positions.
Reductions will occur in staffing, recruiting, relocation, consulting fees, sales-related expenses and supplies, and travel. Virtually all of the savings measures should be in place by the end of the calendar year.
Tyson, which employs 114,000 people worldwide, plans to eliminate some 420 positions mainly held by Tyson management and management support staff. Another 430 jobs currently open will not be filled and will be eliminated. All affected employees will be offered severance payments and outplacement assistance, and they will also be given an opportunity to apply for other jobs in the company.
Jobs being eliminated include about 140 positions in northwest Arkansas and 90 in Dakota Dunes SD and Dakota City NE.
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