Meat processing company JBS is closing a packing plant in Riverside and laying off 374 employees, the California Meat Processing Authority said in a notice. Employment Development Department.
The closure comes as limited cattle supply has led to record high beef prices this year.
The Riverside facility, operated by JBS subsidiary Swift Beef Co., prepares meat for sale in U.S. grocery stores but does not kill the animals, JBS spokeswoman Nikki Richardson said.
Affected employees will be provided with opportunities in other JBS factories“including relocation support,” Richardson said. Employees who choose not to relocate will be given 60 days' notice prior to the termination of their employment.
Beef prices have risen sharply in recent months as ranchers have reduced their herds due to drought on pastures and a parasite known as the worm, leading to a halt in imports of Mexican cattle into the United States. Last month meat processing giant Tyson Foods has closed one of the largest beef processing plants in Nebraska.
JBS said products produced at the Riverside plant will be transferred to other company facilities without interrupting supply or customer service.
The transition is expected to be completed by early next year, the company said.
“JBS is committed to supporting impacted team members through this transition,” Richardson said in a statement. “The company remains focused on providing high-quality products and reliable service while strengthening its operational presence to meet growing market needs.”
The closure of the Riverside plant is part of the company's broader strategy to streamline and simplify its operations. JBS shares fell less than 1% in midday trading Monday and have remained flat this year, up about 2% since January.
The company, which is headquartered in the United States in Greeley, Colorado, also has facilities and offices throughout Europe and Australia.
The situation is also changing in the California oil industry: Valero Energy Corp. plans to close a major oil refinery in the state by spring 2026.
Last year, Chevron moved its headquarters from San Ramon, California, to Houston, citing complex business regulations in the Golden State. This year the last plant to close down sugar beet Sugar production in California closed, eliminating hundreds of jobs in the Imperial Valley.
California's job growth was just 2% from the second quarter of 2022 to the second quarter of this year, ranking California 48th among all states, according to an economic forecast from Chapman University released this month.
The state lost jobs consecutively from June to September. Additionally, the state is expected to add 62,000 jobs next year.
California also saw a net outmigration of more than 1 million residents between 2021 and 2023, with the top five destinations being states with zero or very low state income taxes: Texas, Arizona, Nevada, Idaho and Florida, the report noted.
