Butterball abruptly closes another factory and fires everyone as crisis deepens

For employees at one of Butterball’s locations in Arkansas, the time came to move on after receiving 60 days’ notice about the impending plant closure.

Is this an isolated event, or is the powerful turkey producer facing rough waters? Upon some research, the answers seem to be “no” and “definitely”…

Butterball, a well-known brand of turkey and poultry products, is especially synonymous with Thanksgiving.

Located in Garner, North Carolina, Butterball produces around one billion pounds of turkey each year, making it one of the country’s largest turkey producers.

On December 4th, 2024, the 180 impacted employees were notified of the planned closure of one of Butterball’s plants in Jonesboro, Arkansas.

That plant in particular receives products from other Butterball plants to process, pack, and ship.

The closure date was February 3, 2025. Per the WARN notice, employees who worked through their agreed-upon end-of-service date would continue to be paid and receive medical benefits.

Employees at the Butterball plant say they saw the signs of the impending closure coming before they officially got the notice…

Marcy Whitsett, a Butterball employee who worked at the closed plant, said there was a noticeable loss of shifts before the closure announcement.

Whitsett said about the shifts, “But then it slowly started going down to four days, three days. Yeah, I think most of us saw it coming.”

Regarding the Butterball closure, Mark Young, president of Jonesboro Unlimited (described as “a private partnership organization dedicated to the advancement of economic prosperity in Jonesboro, Arkansas”), had a few words to say.

“We have a lot of different companies; a great strength in manufacturing. Employees that are looking for opportunities will find opportunities here and that’s good news,” Young said.

Butterball CEO and President Jay Jandrain said the decision to close the Jonesboro plant was “difficult” and acknowledged the impact on “about 180 team members and their families.”

According to Butterball, production normally handled by the Jonesboro plant would be redirected to other facilities within its manufacturing network. It’s likely referring to two other plants in Arkansas that it recently invested over $8.7 million in…

In early 2021, Butterball announced its $8.7 million investment to expand two of its locations: one in Ozark, Arkansas, and one in Huntsville, Arkansas. The expansion was forecast to create around 520 new jobs.

Unfortunately, neither of these locations is close enough for the laid-off employees in Jonesboro to commute to, as they are over three hours away.

The closure of the Jonesboro plant earlier this year isn’t the first one in recent years.

Back in 2017, Butterball closed its plant in Montgomery, Arkansas. The plant, which specialized in bacon processing, had employed around 600 people.

At the time, Butterball had announced that it aimed to retain as many of its employees as possible, including offering relocation assistance who were interested in pursuing open positions at other locations.

Butterball’s net income and sales were lower in 2024 compared to 2023. Specifically, third-quarter sales in 2024 were at a 70% decline compared to the year before.

The decline in sales is likely due to Butterball’s significant legal and regulatory issues following ongoing allegations of turkey abuse, including undercover videos from PETA. As a result, calls for boycotts and negative media coverage likely impacted sales. (The original videos were released in 2006, but they resurfaced on social media in 2024, sparking the conversation again…)

Some of Butterball’s competitors include:

Smithfield (subsidiary of the Chinese WH Group)
Sanderson Farms
Boar’s Head
Jennie-O

Some consumers may be switching to these other brands, given the allegations against Butterball.

Butterball’s sales had declined significantly in 2024, and its Jonesboro location was shuttered earlier this year in February.

Butterball isn’t the only poultry processor struggling. Tyson has also shuttered several of its plants over recent years.

Have you heard of the allegations against Butterball? Are there any other factors you see impacting the poultry production business? Share your inside experiences or thoughts in the comments!

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SOURCE: Butterball abruptly closes another factory and fires everyone as crisis deepens