The following is a press release from Pilgrim's Pride main office based out of Pittsburg, Texas:

On December 19 we announced to our employees in Live Oak that we will eliminate second-shift processing operations at the plant within the next 60 to 90 days. Approximately 505 of the 1,400 positions at the Live Oak plant will be eliminated between February 17 and March 29, 2009. Some contract growers and employees in live operations will also be affected, but we do not have exact numbers at this time.

We are taking this action in our continued efforts to reduce costs and operate more efficiently. This is part of a broad-based plan to improve our competitive position and restore the company to profitability. We are always looking for ways to improve our efficiencies and reduce costs, but at this point we don't have any immediate plans for additional layoffs or closures. It is our long term goal to return to two production shifts when market conditions are favorable.

All employees who are affected by the layoff will be notified within the next few weeks and will continue to work and be paid until their jobs are officially eliminated.

Employees may be given priority consideration for other Pilgrim’s Pride jobs for which they are qualified, and the company will work with the appropriate state and local government agencies to provide employees with outplacement assistance, job training and other services. All qualified employees will also be eligible for Federal COBRA benefits under which they can continue health insurance for up to 18 months by paying full cost. Salaried employees will be offered a severance package.

We have great employees at the Live Oak facility, and we sincerely wish that this action was not necessary. We appreciate the service our employees have given to the company, and we are committed to doing what we can to assist them in finding new employment quickly.