Smithfield Foods to Lay Off Nearly 1,800 Workers; 6 Plants to Close

Smithfield Foods announced today a restructuring plan which will include 6 plant closures and add nearly 1,800 laid off workers to the unemployment rolls. According to Smithfield Foods' press release available at the Smithfield Foods site, the plant closures are meant to streamline operations to make it a stronger market competitor. Smithfield Foods manufactures pork and poultry products that are marketed under several labels including Farmland Foods, Armour-Echrich, John Morrell & Co., Butterball, and others.

Which Smithfield Foods Plants are slated for closure?

Employees of Smithfield Foods' Farmland Foods plant in New Riegel, Ohio, will be affected sooner than most. In April, that plant is slated to close, affecting approximately 230 employees.

Plants closing over the summer months include a Smithfield Packing Company plant in Elon, North Carolina, resulting in 160 jobs lost. Kansas will see the loss of 275 jobs from a John Morrell & Co. plant closure in Great Bend, Kansas. The Heartland will suffer yet another loss this summer as an Armour-Echrich plant in Hastings, Nebraska, will also close. That plant closure will result in 370 layoffs.

Next to close are is a plant in Plant City, Florida, in September, which will affect 760 employees, and at year-end Smithfield Packing Company South in Smithfield, Virginia, will be the final plant closure this year. The Smithfield, Virginia, plant closure will affect over 1,000 employees, though the press release issued by Smithfield Foods indicates that most of the employees at that plant will be offered transfers to other plants, including the Smithfield North plant and other plants in North Carolina.

Smithfield Plant Closures are bad news for North Carolina and Florida.

According to the latest unemployment statistics available at the Bureau of Labor Statistics, North Carolina's unemployment rate as of December 2008 was edging close to 9%, one of the highest unemployment rates in the nation. Florida's unemployment rate was just over 8%, still well above the national average of 7.2%. Florida and North Carolina are among the top 10 states with highest unemployment rate, according to the December figures. January 2009's state unemployment figures will not be available until March 11, 2009.

Sources: Press release: http://investors.smithfieldfoods.com/releasedetail.cfm?ReleaseID=365413 http://www.smithfieldfoods.com/our_company/view.aspx http://www.bls.gov/web/lauhsthl.htm