Tyson Foods, one of the biggest meat companies in the U.S., has announced that it is closing down two plants.
According to the company, chicken processing plants in Van Buren, Arkansas and Glen Allen, Virginia are slated to permanently shut down in May.
Almost 1,700 employees will be affected by the closures -- including 692 workers in Arkansas and 969 in Virginia, according to reports.
In a letter to union officials in Virginia on Monday, Tyson's vice president of labor relations said all jobs at the facility would be eliminated "as part of the company's business strategy to operate more efficiently."
"Tyson regrets that its team members... must be permanently displaced yet hopes to accomplish this closing with the least possible disruption to the lives of the team members, their families, and the community," Rick Nimrick wrote in the letter, which was obtained by the Richmond Times-Dispatch. "The last day of work is anticipated to occur on or about May 12, 2023."
The Virginia plant has been in operation since 1952, according to the newspaper.
Meantime, workers at the Arkansas plant also found out Monday that the facility would be closing in May. That plant was built in 1975, according to KLRT-TV.
"While the decision was not easy, it reflects our broader strategy to strengthen our poultry business by optimizing operations and utilizing the full available capacity at each plant," Derek Burleson, spokesperson for Tyson, said in a statement to multiple outlets. "We are working directly with impacted team members to help ensure they have the option to apply for open positions and relocation assistance where applicable to other Tyson Foods facilities."
The company chose the locations in Virginia and Arkansas due to the scale of the facilities and the "inability to economically improve operations," a spokesperson told CNN.
Tyson Foods -- which produces brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park and State Fair -- operates 123 food processing plants across the country and employs roughly 142,000 workers. Despite a drop in demand and increasing prices, the company reported sales of $13.2 million in the first quarter -- up 2.5% from the previous year.
"We executed our strategy in Q1, growing volume, improving staffing levels, investing in automation and building inventory to meet customer demand, all while maintaining a focus on liquidity and financial health," Tyson Foods President and CEO Donnie King said in a statement. "We faced some challenges in the first quarter. Market dynamics and some operational inefficiencies impacted our profitability. We expect to improve our performance through the back half of fiscal 2023 and into the future."
The company reported sales of $53 billion for fiscal year 2022. It expects sales to be $55 billion to $57 billion for fiscal year 2023.
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