00:00Nebraska loses 3,200 jobs overnight as Tyson closes plant that employed 30% of town.
00:08Nebraska experienced a sudden economic jolt when Tyson Foods permanently closed its beef
00:13processing plant in Lexington on January 20, 2026.
00:18In a single day, roughly 3,200 jobs disappeared.
00:23For a town of about 11,000 people, the loss was catastrophic.
00:27Nearly 30% of Lexington's workforce depended directly on the plant, making this one of
00:32the most severe single-employer job losses in recent U.S. rural history.
00:38Lexington is not just another small midwestern town.
00:42For decades, it stood as one of the nation's most important meatpacking communities.
00:48The Tyson plant supported housing, schools, retail businesses, and public services.
00:54Its closure exposes how deeply vulnerable rural towns become when one employer dominates
00:59wages, jobs, and regional economic stability.
01:03Opened in 1990, the Lexington beef plant became a critical node in the U.S. beef supply chain.
01:09At full capacity, it processed nearly 5,000 head of cattle per day, about 5% of total daily
01:16U.S. beef slaughter.
01:17Over time, it grew into one of Tyson Foods' most important beef facilities and Lexington's
01:23largest source of long-term employment.
01:26Tyson announced the closure on November 21, 2025, citing worsening conditions in the U.S.
01:32cattle market.
01:33The shutdown was confirmed as permanent, effective January 20, 2026.
01:40Executives described the move as a necessary effort to right-size operations amid shrinking
01:45cattle supplies and mounting losses across the beef division.
01:49At the heart of the decision lies a historic decline in the U.S. cattle herd.
01:54By 2025, national cattle numbers had fallen to their lowest level since 1951, nearly 75 years
02:01ago.
02:03Prolonged drought, high feed costs, and years of herd liquidation left processors competing
02:08for fewer cattle at far higher prices.
02:11Lower cattle volumes raised costs and crushed margins for beef processors.
02:16Tyson projected over $600 million in beef division losses, making high-volume plants like Lexington
02:23financially unsustainable.
02:25The Lexington shutdown coincided with eliminating a production shift in Amarillo, Texas.
02:31Together, the moves cut about 4,900 jobs nationwide, marking one of Tyson's largest workforce
02:37reductions.
02:38Thousands of workers, many long-time employees, and immigrants lost jobs.
02:43Secondary effects could push regional losses toward 7,000 jobs.
02:48The disappearance of $241 million in annual wages threatens local stability.
02:54Losing a plant handling 1 20th of U.S. daily beef output tightens supply and raises prices.
03:00More broadly, Lexington highlights how single industry towns nationwide remain vulnerable to
03:05sudden economic shocks.
Comments