JBS cuts processing footprint with Pennsylvania, Tennessee closures
JBS USA has announced plans to close two facilities as part of what it describes as efforts to streamline operations and invest in growth areas across its U.S. network.
The closures include the company’s beef production facility in Souderton, Pennsylvania, near Philadelphia, and a value-added processing facility in Memphis, Tennessee. The move comes as processors across the meat industry continue evaluating capacity, labor availability, efficiency, and long-term competitiveness amid changing market conditions.
While the announcement affects employees and local communities, JBS said production from the facilities will be absorbed by other operations throughout its network, helping maintain supply continuity for customers and livestock suppliers.
“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. “We are deeply grateful to the team members at these facilities for their efforts and contributions over many years. Our focus right now is on supporting them with transparency, respect, and access to new opportunities wherever possible.”
The company said affected employees will have opportunities to apply for open positions at other JBS facilities across the country and will receive transition support and resources.
The closures follow a period of significant investment by JBS in other parts of its U.S. business. Over the past year, the company has expanded facilities in Texas, Georgia, and Iowa, with a particular focus on prepared foods, value-added products, and modernization projects designed to improve efficiency and productivity.
Earlier this year, JBS combined its beef and case-ready operations into a more integrated platform intended to streamline operations and expand value-added capabilities throughout its processing network.
“JBS USA is investing heavily in the United States and in the future of food production,” Batista Filho said. “At the same time, we must ensure our operations are efficient, modern, and positioned to compete. By investing where we are growing and making difficult adjustments where needed, we are building a stronger and more resilient company.”
For cattle producers, plant closures often raise questions about regional market access and competition among packers. While the Souderton facility serves a unique role in the Northeast beef supply chain, JBS indicated that production volumes will be redistributed across its broader network rather than eliminated.
JBS emphasized that the closures do not signal a retreat from U.S. beef production. Instead, company leaders described the move as part of a larger strategy aimed at strengthening operations while positioning the business for future growth.
“Demand for high-quality protein continues to grow, and we are committed to meeting that demand as a reliable partner to our customers, producers, and communities,” he said. “These steps ensure we are better positioned to invest in the future, strengthen our operations, and continue delivering the products people depend on every day.”
The announcement comes as the global protein giant continues to face scrutiny in some markets. Earlier this year, Brazilian prosecutors filed a lawsuit alleging JBS purchased cattle from ranches linked to labor violations in Brazil. JBS has disputed allegations that it failed to adequately monitor suppliers.
JBS USA remains one of the largest beef processors in the United States and said it will continue working with producers, grower partners, customers, and rural communities as it implements the transition plans.
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