Tyson Cuts 3,200 Jobs and Shuts 3 Beef Plants as US Cattle Herd Hits 86.2 Million
Updated
Updated · Newsweek · Aug 20
Tyson Cuts 3,200 Jobs and Shuts 3 Beef Plants as US Cattle Herd Hits 86.2 Million
3 articles · Updated · Newsweek · Aug 20
Summary
Tyson said it is closing beef facilities in Illinois, Utah and Washington and cutting 3,200 jobs as a multiyear cattle shortage squeezes plant utilization and deepens losses.
USDA data show the U.S. began 2026 with 86.2 million cattle—down more than 8 million from 2019 and the smallest herd since the early 1950s—after drought, high costs and trade disruptions curbed rebuilding.
Retail prices are still climbing: the Labor Department’s beef and veal index rose 9.4% in the 12 months through July, while USDA data put steak above $13 a pound.
USDA sees tight supplies lasting through 2027; although total cattle and calves edged up to 94.2 million in July, beef cows fell to a record-low 28.5 million for that month, signaling limited herd rebuilding.
That mismatch is hitting both consumers and processors: Tyson expects a $500 million to $650 million beef-business loss this fiscal year as live-cattle costs rise faster than packers can recover in beef sales.