Tyson to cut nearly half its Amarillo workforce as restructuring begins

Tyson Foods delivered major news on Friday, Nov. 21, announcing changes that will eliminate approximately 1,700 to 1,900 positions at its beef-processing plant in Amarillo. For a facility that currently employs an estimated 3,800 to 4,000 people across two shifts, the reduction represents nearly half the workforce — a shock many in the region had hoped to avoid.

According to the company, the Amarillo plant will eliminate its second shift (B-shift) and transition to a single, full-capacity shift beginning on or about Jan. 20, 2026. The federal WARN letter sent to employees states that B-shift operations “will cease on or about January 20, 2026,” and that the eliminated positions are considered permanent. A small number of temporary roles tied to cleanup or transition work may continue for a limited period after that date, but the bulk of the reduction is final.

The announcement lands hard in Amarillo, where Tyson has long been a major employer and economic anchor. But the decision is part of a larger restructuring effort affecting Tyson’s nationwide beef operations — and Amarillo isn’t the only community facing disruptions.

A Broader Restructuring: Lexington Plant to Close

Tyson also confirmed it will permanently close its beef processing plant in Lexington, Nebraska in early 2026, though it has not yet announced a final shutdown date. That facility employs between 2,700 and 3,200 workers and has been operating below capacity in recent months. Together, the Amarillo and Lexington changes represent one of Tyson’s largest beef-division restructurings in years.

These two plants are significant pieces of Tyson’s network: the Amarillo facility is designed to process up to 6,000 head of cattle per day, while the Lexington plant can handle around 5,000 per day, according to industry data. With both plants scaling back or shutting down, Tyson says it will increase production at other facilities in Kansas, Nebraska, and additional locations to maintain supply flows to retailers, restaurants and other customers.

Tyson’s Explanation: Right-Sizing for Long-Term Survival

In a statement posted to its investor website, Tyson said its restructuring strategy is intended to “right-size its beef business and position it for long-term success” by “optimizing volumes across our network.”

The company also emphasized it is not abandoning the affected workers. “Tyson Foods recognizes the impact these decisions have on team members and the communities where we operate. We are committed to supporting affected employees through severance packages, priority hiring at other Tyson facilities, relocation assistance where applicable, and — for union employees in Amarillo — recall rights under the existing collective bargaining agreement.”

For many families, these measures will soften the blow — but they won’t fully remove the uncertainty. Workforce organizations, city officials, and community advocates are still evaluating what the employment landscape will look like once the cuts take effect. So far, Tyson has not released department-level details or local severance totals.

Why Amarillo Is Being Hit: A Shrinking National Cattle Herd

Industry analysts point to one primary cause: a national cattle shortage decades in the making. Several years of severe drought, historically high feed costs, and widespread herd liquidation have driven the national cattle inventory to its lowest level in generations. As of Jan. 1, 2025, the U.S. cattle herd stood at 86.7 million head — the smallest since 1951. A USDA midyear estimate in July showed only a partial rebound to roughly 94 million head, still far below the levels processors need for efficient operation.

Fewer cattle mean fierce competition among meatpackers, lower plant utilization, and higher operational costs. Tyson’s beef segment has posted a combined $1.5 billion in operating losses over the past two fiscal years and is projecting another $400 million to $600 million in losses for fiscal 2026. For Tyson, restructuring isn’t simply a choice — it’s a financial necessity.

Executives have framed these decisions as essential to stabilizing the business and preserving long-term slaughter capacity. In practical terms, that means keeping the company viable today so it can remain a major beef processor when the national herd eventually rebuilds.

What Comes Next for Amarillo?

While Jan. 20, 2026, is the key transition date, many details remain unclear. Tyson has not broken down impacts by job type, department, or seniority. Workforce groups, city leaders, and economic development officials have not yet released formal responses, though planning is likely already underway.

Tyson believes cattle supplies will remain tight through at least 2027, but the company says the revised network will help it weather current market conditions and position itself for renewed profitability once the cattle cycle turns upward.

For Amarillo, the coming year will involve a mix of preparation, uncertainty, and community effort. The city has navigated major employer changes before, and support systems — from job retraining to relocation assistance — will be essential in helping affected workers navigate the transition.

For now, the most important thing is clarity, communication, and a focus on practical steps. Tyson’s restructuring marks a major shift in the region’s employment landscape, but with coordination and community support, Amarillo can begin planning for the next chapter.