One of the nation’s largest meat processors is shutting down a Pennsylvania beef plant later this year, resulting in nearly 1,500 layoffs and highlighting the growing challenges facing the U.S. beef industry.
JBS USA announced that it will permanently close its beef-processing facility in Souderton, Pennsylvania in August 2026, according to a WARN notice filed with the state. The closure is expected to affect approximately 1,485 workers and marks one of the largest food manufacturing layoffs announced this year.
Historic cattle shortage pressures meatpackers
The shutdown comes as beef processors struggle with the smallest U.S. cattle herd in more than 70 years. Years of drought, high feed costs and shrinking herd sizes have pushed cattle prices to record levels, squeezing profit margins for meatpacking companies.
JBS, the world’s largest beef processor, said the Souderton plant employs roughly 1,700 workers and processes about 2,000 cattle per day. However, the company has faced mounting financial pressure as the cost of acquiring cattle continues to rise. JBS reported a $279 million operating loss in its North American beef business during the first quarter of 2026.
Industry-wide cutbacks continue
The Pennsylvania closure is the latest sign of broader challenges across the beef industry. Earlier this year, Tyson Foods closed a major beef-processing plant in Nebraska and reduced production capacity at another facility in Texas as companies adjusted to limited cattle supplies…