Tyson Foods, a prominent player in the meat industry, has recently made a significant move by closing two facilities in North Philadelphia associated with the Original Philly Cheesesteak Co. brand. This decision has led to the elimination of hundreds of jobs, causing a ripple effect in the local community.

Tyson's Business Strategy and Its Impact on Jobs

Closure Details and Impact on Workers

The closures were made public through a layoff notice filed by Tyson with the Pennsylvania Dept. of Labor and Industry, as required by the federal WARN Act. The two plants, located at 520 E. Huntington Park Ave. and 4001 N. American St., are set to lay off 229 workers. This sudden news has left many employees facing uncertainty about their future.These plants have been an integral part of the local economy, providing employment opportunities to the residents of North Philadelphia. The closure will not only affect the workers directly but also have a domino effect on the surrounding businesses and the community as a whole.

Acquisition and Past Plans

Original Philly Holdings Inc. was formed through a merger between Original Philly Cheesesteak Co. and Philadelphia Pre-Cooked Steak Co. and was acquired by Tyson Foods in 2017. At that time, Tyson did not disclose its plans for the Philadelphia plants. However, now, as part of its business strategy to operate more efficiently, Tyson is closing these two plants.This acquisition was seen as a significant move in the industry, as Tyson aimed to expand its presence in the Philly-style sandwich market. But the subsequent closure raises questions about Tyson's long-term plans and its ability to manage its operations effectively.

Impact on the Local Community

The estimated last day of production is December 13 at Huntington Park Avenue and January 31 at American Street. During this transition period, Tyson Foods is committed to minimizing the disruption to team members, their families, and the community. However, the reality is that many workers will be displaced, and the local economy will suffer.Original Philly got its start in Roxborough in 1981 under the name Roxborough Meat Co. Its products were widely used by restaurants, stadiums, hospitals, and colleges, contributing to the local food ecosystem. The closure of these plants will leave a void in the market, and it remains to be seen how the local businesses will adapt to this change.

Company Overview and Other Closures

Tyson Foods, headquartered in Arkansas, is the largest meat company in the country in terms of sales. It produces roughly 20% of the country's supply of pork, chicken, and beef and brought in $53 billion in sales in the 2022 fiscal year. The company also owns the Jimmy Dean, Ball Park, and Hillshire Farm brands.In addition to the closures in North Philadelphia and Emporia, Kan., since 2023, the company has closed six chicken plants and a pork plant in the U.S. These closures are part of Tyson's efforts to streamline its operations and adapt to the changing market conditions.Tyson leaders had previously misjudged the demand for chicken, which led to these closures. The company also faces challenges in the beef sector as the supply of available cattle has dwindled compared to past decades, pushing prices up. These factors have forced Tyson to reevaluate its operations and make difficult decisions.