‘Devastating shock’: Residents, city leaders wonder what’s next for Lexington after Tyson closure announcement

Just a few days after the meat packing giant Tyson announced its shuttering one of its largest plants in Lexington, community members there are trying to figure out what’s next.

On Friday, the company sent out letters in English and Spanish that read the plant will “cease certain operations at its Lexington, Nebraska complex,” and that positions “will be eliminated as part of a mass layoff resulting from this decision.” The letter, penned by Tyson’s Vice President of Operations Jason Poole, said the plant is expected to permanently close “on or about Jan. 20, 2026.”

Clay Patton, vice president of the Lexington Area Chamber of Commerce, estimates about 3,200 workers are employed at the facility.

“That’s a pretty major blow when they don’t say there’s a retraining program, or we’re offering transfers to [another] plant,” Patton said. “It’s a devastating shock to the area.”

Tyson is the largest employer in Lexington, which is home to more than 10,000 people, according to the 2020 census. Patton said the closure will impact most of the community in some way, including many of the children in Lexington’s school district, which enrolls around 3,000 students.

“We’re looking at upwards of 50% of our student population,” Patton said. “And you think about the ripple effects of custodians, administration, teachers, down to bus drivers.”

Lexington’s population has grown with increasing capacity at the plant. The city is home to four elementary schools, one middle school and a high school. Patton pointed to other businesses that will be impacted by employees with relatives who work at the Tyson plant.

“Lexington really does host a diverse population that really is community focused,” Patton said. “This impacts everything from car dealerships, body shops, auto mechanics, restaurants, food trucks, hospitality, motels, hotels, grocery stores. Housing has been a huge issue in Lexington, because we’ve got a bustling population.”

The Tyson plant was originally a combine plant operated by Sperry-New Holland. In 1985, at the height of the farm crisis, the company shut down the plant, eliminating 940 jobs. Just three years later in 1988, Iowa Beef Packers (IBP), which would later be acquired by Tyson, revived the facility, bringing in around 1,200 workers. Historian David Bristow wrote “after suffering a 6.2% population decline in the 1980s, Lexington grew by almost 52% in the 1990s, exceeding 10,000 residents for the first time in its history.”

Patton said Lexington has been through a major employer closure before, and he said residents of his city will weather the storm together.

“There’s an entrepreneurial spirit here within Lexington that I don’t think can be overlooked,” Patton said. “Even if Tyson doesn’t want there to be competition from another beef processing plant, will they work with the community to maybe remove that aspect of it? Could it be a distribution warehouse? Could it be another manufacturing facility?”

Several surrounding meatpacking companies have already jumped on the possibility of hiring more workers. Though, that would either mean families relocating or an hour’s drive on I-80 to get to work from Lexington.

Sustainable Beef, a newer beef processing plant in North Platte, is hosting a job fair Tuesday and Wednesday at the Lexington Public Library. In a social media post, the facility wrote, “We know the past few days have been incredibly tough for many talented individuals facing unexpected job loss. If you or someone you know has been affected, we want you to know that you’re not alone – and new opportunities are out there.”

North Platte is located an hour west of Lexington. Another packing plant, Gibbon Packing, which is located in Gibbon, about an hour’s drive east of Lexington, pulled together a job fair for Tyson employees on Sunday and has plans to host more job fairs this week. The company is offering relocation assistance to workers willing to relocate to its plants in Gibbon or even in Minnesota and Missouri.

With worries that Lexington could turn into a bedroom community, Patton said he’s heard conversation of business owners starting up bus lines to get Lexington residents to different facility jobs, in hopes that the town can hang on to some of its residents. The Chamber of Commerce leader said there’s still a need for meat processing in Lexington.

“You look at Dawson County, and we’re a powerhouse ag county,” Patton said. “From our cattle feed yards, to our row crop operations, to our cow-calf and range land. There’s just a tremendous amount of ag opportunity that’s in Lexington and part of that processing capability.”

Nebraska Public Media News reached out to the Lexington mayor’s office, the Lexington school district, several city council members and Sen. Teresa Ibach, who represents the area in the Nebraska Legislature. All have either declined to comment or not responded to inquiry requests.