JBS USA announced June 12 the planned closure of two beef processing facilities in Pennsylvania and Tennessee, eliminating approximately 2,000 jobs as the world’s largest meatpacker responds to a severe U.S. cattle shortage.
The beef production facility in Souderton, Pennsylvania, will shutter by August 14, 2026, cutting approximately 1,485 jobs, according to a Worker Adjustment and Retraining Notification posted to the Pennsylvania Department of Labor & Industry website. The company will also close a value-added facility in Memphis, Tennessee, eliminating 208 additional jobs at the Empire Packing location.
“These decisions are never easy because they directly affect our team members and the communities where we operate,” said Wesley Batista Filho, CEO of JBS USA, in the company’s statement. “We are deeply grateful to the team members at these facilities for their efforts and contributions over many years.”
The Souderton plant, which has operated since 1877 and became one of Montgomery County’s top employers, represents a significant loss for the region. United Food and Commercial Workers Local 1776, which has represented employees at the plant since 2010, vowed to fight the closure. “This closure would be devastating, not only for our members, but for the entire Southeastern Pennsylvania region that depends on these jobs,” the union said in a statement.
The closures are part of a broader industry contraction driven by cattle scarcity. The U.S. cattle herd stood at only 86.2 million head in January 2026, the smallest it’s been since 1951, according to reporting on the closure. Additionally, a May 2025 federal ban on Mexican cattle imports to prevent screwworm spread has further tightened supply. These constraints have squeezed meatpacker margins despite record beef prices.
JBS said production from the affected facilities will be absorbed into other operations across its network. The company emphasized it is investing in modernization and expansion elsewhere, including major projects in Texas, Georgia, and Iowa focused on prepared foods and value-added capabilities. “By investing where we are growing and making difficult adjustments where needed, we are building a stronger and more resilient company,” Batista Filho stated.
JBS USA said it would provide on-site support and resources to assist affected employees, including opportunities to apply for open roles at other company facilities across the United States. The company remains the largest employer in the U.S. beef industry despite the consolidation.
Sources
- JBS Foods — official announcement of facility closures and CEO statement
- PhillyBurbs — details on Pennsylvania plant closure date, job count, and union response
- The Commercial Appeal — information on Memphis facility closure
- Reuters — background on U.S. cattle shortage and industry outlook
