Tyson Plant Closure Threatens Lexington, Neb.: 3,200 Jobs Cut; Region Could Lose Up to 7,000

LEXINGTON, Neb. — The Tyson Foods beef processing plant in Lexington will close next month, eliminating about 3,200 jobs in a town of roughly 11,000 residents and setting off an economic shock that may ripple across the region.

University of Nebraska–Lincoln estimates shared with The Associated Press project total job losses could reach about 7,000 in Lexington and neighboring counties. Tyson employees alone stand to lose an estimated $241 million a year in pay and benefits. Tyson says the closure is part of an effort to "right-size" its beef operations after an unusually low U.S. cattle herd and a projected roughly $600 million loss on beef production next fiscal year.

A Plant at the Heart of a Community

Located near the geographic center of the United States and surrounded by cornfields, silos and cattle ranches, Lexington grew around the plant, which opened in 1990 and was acquired by Tyson about a decade later. The influx of jobs nearly doubled the town's population and supported neighborhoods, recreational facilities, a single-screen movie theater and a school system that estimates nearly half its students have at least one parent employed at the plant.

Longtime employees formed social bonds through work, churches and civic life. For many immigrant families, the plant provided an attainable version of the American Dream: steady paychecks, home ownership and school opportunities for their children.

Workers Face Uncertain Prospects

Thousands of employees now confront mortgage payments, car loans, insurance bills and college tuition without an income to cover them. Older workers, immigrants with limited English, and people without high school diplomas or online-application experience say finding new jobs will be difficult.

"We only know meat work for Tyson, we don't have other experience," said Arab Adan, a Kenyan immigrant. "Which state are we gonna go, daddy?" he recalled his children asking.

Other workers have small savings or temporary cleaning jobs, and some families say they may return to Mexico for a time. But many — especially those with long tenures and limited transferable skills — have no clear plan.

Local Businesses and Services Face a Domino Effect

Economists and local officials warn of cascading impacts: families leaving will reduce school enrollment and city tax revenue, prompting layoffs and service cuts; restaurants, shops and service providers will lose customers; property values and municipal budgets may suffer.

Los Jalapenos, a Mexican restaurant frequented by plant workers, could struggle to stay open if regular customers depart. Owner Armando Martinez, who has serious health challenges, said the loss of patronage could force him to close.

City Manager Joe Pepplitsch and others hope Tyson will put the facility up for sale so another employer might repurpose it, but they caution that finding a buyer and restoring comparable employment would be slow and uncertain. Pepplitsch also noted a long-standing tax agreement limited Tyson's city tax contributions and said the company "owes this community a debt" for helping ease the transition.

Tyson issued a statement saying it "is currently assessing how we can repurpose the facility within our own production network" but did not provide details or commit to specific community support or worker assistance programs.

What’s Next

Community leaders, nonprofit groups and state officials will face urgent work to coordinate retraining, unemployment assistance, job search support and possibly relocation services. The closure highlights how dependent many rural towns are on a single large employer, and the social as well as economic consequences when that employer departs.

For now, residents are left grappling with the loss of incomes, community ties and a future that suddenly feels uncertain.