The move is the latest step by the chicken processor, the country’s largest, to reduce costs and keep running. The company has twice extended a temporary credit line with its lenders. The company laid off about 600 employees in August and hired a restructuring officer last week.
Pilgrim’s Pride has been struggling since the summer after grain and fuel prices rose to record levels, pushing production costs up.
Pilgrim's Pride told the press it is notifying employees affected by the cuts this week. It will provide severance benefits and help finding jobs.
"Our company and our industry are facing the toughest operating environment in decades, and it is absolutely critical for Pilgrim's Pride to continue to do everything we can to operate our business as efficiently as possible," the company said in a statement.
Pilgrim’s Pride’s stock price as of 9 a.m. Central Time on Thursday was 31 cents.
Source: Associated Press
Tom Egan, vice president, Industry Services/Membership, for PMMI, adds his thoughts on how FSMA will impact meat processers and what equipment suppliers are doing to present more sanitary design options.
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