JBS USA is set to lay off at least 2,000 workers as it closes two beef plants and reshuffles its chicken operations, marking one of the largest single rounds of job cuts in the meat processing sector this year.
The company is shutting down a beef processing plant in Souderton, Pennsylvania, a Philadelphia suburb, which will result in roughly 1,500 layoffs, according to a Worker Adjustment and Retraining Notification notice filed with the state. A separate value-added facility in Memphis, Tennessee, is also closing, affecting another 200 employees.
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Production from those two facilities will be shifted to the firm’s other operations, the company said.
JBS USA did not immediately respond to a request for comment.
In a separate announcement, the meatpacker’s Pilgrim’s Pride said it would move some poultry production from Chattanooga, Tennessee, to Ellijay, Georgia. The shift will mean the partial closure of the Chattanooga plant and 348 layoffs. Pilgrim’s is investing heavily in expanding its Ellijay facility.
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The cuts come as major meatpackers continue to take heavy losses in cattle. The U.S. cattle herd has shrunk to its smallest in decades, pushing consumer beef prices to record highs and squeezing margins for processors. Tyson Foods has also closed cattle plants in recent months, shifting focus to poultry and other segments.
JBS reported a $279 million adjusted operating loss for its North American cattle operations in the first quarter of 2026 — a sharp drop from a $158 million loss in the same quarter the prior year. The meatpacker recently consolidated its three beef business units into one, part of a broader efficiency push.
“JBS USA is investing heavily in the United States and in the future of food production,” Wesley Batista Filho, CEO of the meatpacker, said in a statement. “At the same time, we must ensure our operations are efficient, modern, and positioned to compete.”
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The poultry segment, meanwhile, has been a major beneficiary of the shift. Cash-strapped consumers are buying more chicken instead of higher-priced cattle. Pilgrim’s $75 million expansion in Georgia will focus on boneless products for chicken tenders and sandwiches. Pilgrim’s is also preparing to open a new $400 million poultry plant in Georgia.
The moves reflect a broader industry realignment. With cattle supply unlikely to rebound quickly, beef capacity is being cut while poultry gets the capital. Whether those bets pay off depends on consumer spending and whether pork — also under pressure — sees similar shifts.