Tyson Foods ends Fortrex contract at Lexington beef facility
Sanitation contractor issues WARN notice as Tyson prepares to shut beef plant.
USA – Fortrex has notified the Nebraska Department of Labor that it will cease sanitation work at Tyson Foods’ Lexington, Nebraska, plant after receiving unexpected word that its contract will end on Jan. 20, 2026.
The company noted that it has handled sanitation at the facility since March 15, 2013, but Tyson’s short-notice decision now forces changes to its workforce at the location.
Because of the contract’s termination, all 139 Fortrex staff at the plant will either be laid off or moved to other sites, and the company said all affected employees have been informed.
Fortrex added that eligible workers will be offered transfers to nearby Fortrex-operated facilities.
Tyson’s Plant Closure and Operational Shift
The contractor’s exit coincides with Tyson Foods’ announcement in late November that it plans to shut down the Lexington beef plant, which has about 2,500 employees.
Tyson also plans to scale back its Amarillo, Texas, beef facility to a single full-capacity shift as it adjusts production across its network.
The company said volumes will be redistributed to other plants to maintain supply levels and meet customer orders throughout its beef operations.
Tyson added that employees affected by the realignment will have opportunities to transfer to other facilities and receive relocation assistance where needed.
Financial Strains on Tyson’s Beef Division
These steps come during a difficult financial stretch for Tyson’s beef segment, which posted an adjusted operating loss of US$94 million in the fourth quarter of fiscal 2025 after losing US$71 million in the same period a year earlier.
Quarterly beef revenue reached US$5.49 billion, up from US$5.26 billion, driven by a 17 percent increase in average prices even though volumes fell 8.4 percent.
For the full fiscal year, the segment recorded an adjusted operating loss of US$426 million, widening from a US$291 million loss the previous year while annual sales rose to US$21.6 billion from US$20.5 billion.
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