JBS USA is set to lay off 2,000 workers as the meat processing giant closes two beef plants and makes other changes to its chicken manufacturing network.
The meatpacker is closing a beef processing plant in the Philadelphia suburb of Souderton that will result in approximately 1,500 layoffs, according to a WARN notice. JBS is also shuttering a value-added beef facility in Memphis, Tennessee, where another 200 employees work, according to media outlets.
JBS said production from the shuttered beef plants will be absorbed into other operations across its network. The meat giant did not immediately respond to a request for comment.
In a separate announcement, JBS-owned Pilgrim's Pride said it would shift some chicken production from Chattanooga, Tennessee, to Ellijay, Georgia, where the company is investing $75 million to expand a poultry facility. The shift will lead to the partial closure of the Chattanooga plant, with 348 workers set to be laid off.
The changes come as meatpackers struggle with heavy profit losses in beef due to U.S. cattle shortage that has pushed consumer prices to record highs. The shortage has prompted other companies, such as Tyson Foods, to close plants and prioritize chicken and other more profitable segments.
JBS reported a $279 million adjusted operating loss for its North American beef operations in the first quarter of 2026, compared with a $158 million loss the prior year. The company recently consolidated its three beef business units into one as part of a broader effort to focus on efficiency.
“JBS USA is investing heavily in the United States and in the future of food production,” Wesley Batista Filho, CEO of JBS USA, said in a statement. “At the same time, we must ensure our operations are efficient, modern, and positioned to compete. By investing where we are growing and making difficult adjustments where needed, we are building a stronger and more resilient company.”
As beef profits decline, meatpackers are investing heavily in chicken. The poultry segment has been a major beneficiary as cash-strapped consumers purchase more chicken instead of higher-priced beef.
Pilgrim's $75 million investment will be used to expand production of boneless chicken products for tenders and chicken sandwiches. The move comes as the company is set to open a new $400 million chicken plant in Georgia.
