Tyson Foods Extends Limited Operations at Closing Beef Plant in Nebraska

Tyson Foods has announced that it will continue limited beef processing at its Lexington, Nebraska plant, even as the facility proceeds toward permanent closure. The update provides a brief extension of employment for a small share of workers, softening the immediate impact of the shutdown on the local community and workforce.

The company originally disclosed in November that the plant would cease operations around January 20, citing the severe strain caused by historically tight U.S. cattle supplies. Reduced cattle numbers have sharply increased procurement costs, making it difficult for large beef processors to operate profitably under current market conditions. As cattle inventories fell to their lowest levels in nearly 75 years, Tyson faced rising input expenses that outweighed the benefits of strong beef demand and high retail prices.

In a new notice to Nebraska state officials, Tyson confirmed that layoffs have begun as planned. However, approximately 292 of the facility’s roughly 3,200 employees will continue working for an additional period ranging from three to 185 days. These workers will help wind down operations, complete necessary processing tasks, and handle responsibilities tied to the plant’s phased transition. Tyson clarified that only a portion of these employees—fewer than half—are expected to remain beyond the end of January as activities taper off.

During the transition, the company will maintain what it described as “limited further processing,” meaning that only scaled-down production steps will take place while most of the plant’s regular functions are gradually shut down. The move reflects Tyson’s effort to manage the closure in an orderly manner while reducing disruption to supply chains and partner operations.

The Lexington plant has long been a major economic anchor for the town of about 10,000 residents. Local officials have expressed concern about the employment shock but remain cautiously hopeful that the facility might attract a buyer or be repurposed, potentially preserving some level of industrial activity. As the shutdown advances, community leaders and state agencies are exploring support options for displaced workers and searching for new opportunities to mitigate the economic fallout