On January 20, 2026, Tyson Foods announced the permanent closure of its Lexington, Nebraska plant and reduction of its Amarillo, Texas facility to a single shift. The beef segment posted a 1.135 billion dollar operating loss in fiscal 2025, prompting the restructuring.
Combined, these actions eliminate approximately 3,212 jobs in Lexington and roughly 1,700 in Amarillo, totaling nearly 5,000 positions. The closures reduce beef processing capacity by an estimated 4.8% of U.S. national slaughter capacity.
The Cattle Supply Crisis
The U.S. cattle herd has shrunk to historic lows due to droughts, high feed costs, and liquidation. This crisis forces beef processors to compete aggressively for limited cattle, driving up prices and squeezing profit margins.
Tyson’s beef division, operating on thin margins, absorbed these pressures until losses became unsustainable. By late 2025, leadership determined that restructuring was necessary to restore profitability.
Tyson’s Beef Division Under Pressure
Tyson’s Lexington, Nebraska facility, part of the company since 2001, was a major regional beef producer. The company invested millions into the plant, including a 47 million dollar expansion in 2015.
However, mounting losses from the beef division forced the company to abandon plans for long-term growth. The closure represents a significant reversal for both the company and its community.
Mounting Pressure Forces Action
Throughout 2025, Tyson’s beef segment losses continued to accumulate. In November 2025, Tyson’s board concluded that incremental cost-cutting was insufficient.
On November 21, Tyson announced the permanent closure of its Lexington plant and reduction of its Amarillo facility to a single shift, marking one of the company’s most drastic recent moves in beef processing.
Nearly 5,000 Jobs Lost
The Lexington plant closure resulted in the loss of approximately 3,212 jobs, with an additional 1,700 positions affected when the Amarillo plant shifted to a single shift. This move eliminates daily processing capacity for about 5,000 head of cattle.
According to a University of Nebraska-Lincoln economic model, approximately 7,000 jobs are projected to be lost across Nebraska when direct, indirect, and induced impacts are included.
Lexington’s Economy Under Strain
The town of Lexington, Nebraska, with a population of just over 10,000, now faces serious economic challenges. Tyson was the largest employer in the area, and its closure has triggered additional job losses among suppliers and local businesses.
The closure is expected to result in declines in local tax revenues and retail spending, with pressure mounting on local services and schools.
Workers Face Uncertain Futures
Workers at the Lexington plant earned an average of about 94,169 dollars annually, including wages, benefits, and bonuses. With the closure, these workers are estimated to face a collective loss of roughly 241 million dollars in income annually.
Many employees have worked at the plant for decades, and relocation is not an option for most. While Tyson is offering severance and potential transfers, the prospects of finding comparable opportunities are difficult.
Competitors Watch and Calculate
Tyson’s closure has reverberated throughout the beef industry. Tyson, along with JBS, Cargill, and National Beef, controls a large share of U.S. beef production.
Tyson’s decision to cut an estimated 4.8% of daily slaughter capacity raises concerns about future plant closures or production slowdowns in the industry.
National Beef Supply Faces Disruption
The Lexington closure removes processing capacity for nearly 5,000 cattle per day. With the national cattle herd still in decline, this disruption further strains the U.S. beef supply.
Analysts forecast that imports of beef will rise in 2026 to help meet demand, which could lead to higher prices for consumers. Ranchers face growing competition for access to remaining processors.
The Norfolk Precedent
Tyson’s decision to close Lexington evokes memories of the 2006 closure of its Norfolk, Nebraska plant. After Norfolk’s shutdown, the facility was largely stripped of equipment and infrastructure, leaving an empty building nearly 20 years later.
Local leaders in Lexington are urging Tyson not to repeat this history, advocating for the preservation of the site for potential future use.
Tyson Leadership Under Pressure
CEO Donnie King and Tyson’s leadership team are under scrutiny following the closure announcement. Shareholders and employees have questioned whether Tyson exhausted all alternatives before making such a move.
Past public statements promising long-term commitment now appear in tension with the company’s actions.
Governor Pillen Calls for Clarity
Nebraska Governor Jim Pillen has demanded that Tyson act regarding the fate of the Lexington plant, urging the company not to leave the facility abandoned like Norfolk.
While Tyson has stated it does not plan to strip the Lexington plant, the governor’s call for swift action reflects growing concern about prolonged uncertainty affecting the community.
Tyson Explores Repurposing Options
Tyson is exploring options to repurpose the Lexington facility, including the possibility of converting it into a case-ready meat facility. Such a conversion would reduce employment compared to the former slaughter operation but could keep the site functional at a smaller scale.
No formal decision has been announced, and local leaders continue to urge quick action.
Workforce Retraining Challenges
Nebraska and Texas workforce agencies have initiated retraining programs for displaced workers, offering short-term certificates in various fields. However, these programs cannot absorb the large number of job losses in the area.
For many workers, relocating means leaving behind homes and communities, underscoring the difficulty of recovery in regions like Lexington.
What Comes Next for Beef Processing
The closure raises important questions about the future of beef processing in the U.S. Will consolidation continue? Will smaller regional processors expand, or will beef imports play a larger role?
The answers will shape the industry’s future as the market adapts to a smaller herd and tighter margins.
Political Fallout
U.S. Senate Majority Leader Chuck Schumer has called for increased scrutiny of Tyson’s closure, warning that it could have significant consequences for ranchers and consumers.
Schumer’s concerns reflect broader anxiety about the concentration of power within the meatpacking industry and its impact on rural economies.
Cattle Ranchers Face Uncertainty
With Tyson’s Lexington plant closed, cattle ranchers in the region face fewer local buyers for their livestock. This could reduce competition and result in lower prices paid to some ranchers.
Some may have to transport cattle further, adding to costs and stress as they adapt to changing market dynamics.
Environmental and Food Security Implications
As the U.S. beef industry faces tighter supply and reduced domestic slaughter capacity, imported beef is expected to fill part of the gap. This raises concerns about environmental standards and food security, as imported beef may not always be produced under identical regulatory regimes as U.S. beef.
The concentration of processing in fewer plants also increases vulnerability of the U.S. food supply.
Sources:
University of Nebraska–Lincoln; Economic Impacts of the Tyson Beef Plant Closure in Lexington, Nebraska; January 20, 2026
Yahoo Finance (via Amarillo Globe-News reporting); Tyson cutting more than 1,700 jobs in Amarillo, closing Nebraska plant; November 21, 2025
Nebraska Public Media; UNL report estimates nearly $3.3 billion in annual economic losses from Tyson Foods closure; December 22, 2025
KFGO / NAFB; Study estimates the impact of Tyson’s plant closure in Nebraska; December 29, 2025
NEPM / NPR; How Tyson’s beef plant closure will impact the local economy in Nebraska; January 9, 2026