SALEM, Ohio — JBS, the world’s largest meatpacking company, announced it is closing its beef production facility in Souderton, Pennsylvania, laying off 1,500 workers effective Aug. 14.
The slaughterhouse can process 2,000 cattle per day, making it one of the largest beef slaughterhouses east of the Mississippi.
JBS USA is also closing its value-added facility in Memphis, Tennessee, which employs about 200 people, as a way to “strengthen operations for the future,” according to a company press release on June 12.
The closure comes at a challenging time for the beef industry, as cattle numbers continue to decrease and prices remain high. The U.S. cattle herd is at a 75-year low, according to USDA data.
The Virginia Cattlemen’s Association called news of the plant’s closure “disappointing.”
“The loss of significant East Coast harvest capacity is a blow to cattle producers in a region of the country that already has limited processing options,” the group said in a statement.
Production from the two closing facilities will be absorbed by other JBS plants, according to the press release. Earlier this year, JBS also combined its beef and case-ready businesses to “improve efficiency at the company.
Over the past year, the company has made significant investments in new facilities and improvements in Texas, Georgia and Iowa to grow its “prepared foods and value-added capabilities, modernize operations and enhance the company’s ability to serve customers in the years ahead.”
“JBS USA is investing heavily in the United States and in the future of food production,” said Wesley Batista Filho, CEO of JBS USA, 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.”
JBS says it is implementing a transition plan for those laid off, which will include providing opportunities for employees to apply for open roles at other facilities in the United States and on-site support and resources to assist team members.
Worker impact
UFCW Local 1776, the union that represents JBS USA workers at the Montgomery County, Pennsylvania, plant, says the state cannot afford to lose over 1,000 “family-sustaining jobs.”
The union, which represents over 30,000 members in Pennsylvania, Ohio, West Virginia, New York and New Jersey, is currently working with local, state and federal officials to keep the plant open, a plant that employed workers who carried the nation through the COVID-19 pandemic and were hit hardest by illnesses during that time, according to the union’s press release.
“We recognize that the beef industry is facing significant economic pressure driven by tariffs, global trade dynamics and market conditions. But the burden of these challenges cannot fall on working families,” the union said in a statement.
“This situation is a reminder that decisions made by elected officials have real consequences for workers and their communities. Trade policies and economic strategies directly impact American workers.”
Plant history
The Souderton plant was originally owned by the Moyer family, which began producing meat products in the Philly suburbs in 1877. The current packing plant was built in 1974. Moyer Packing Company was sold to Smithfield Foods in 2001. At that time, Moyer Packing was the largest beef processor in the eastern United States. JBS acquired the plant when it bought Smithfield’s beef assets.
