Smithfield Foods (NYSE:SFD) announced that it will lay off 120 more workers in addition to what was previously announced closure of a Virginia facility that produces hot dogs and deli meat. Smithfield also said that it plans to close the Portsmouth plant in August.
Smithfield Foods was in the news recently when the company announced it would be sold for $4.72 billion to China’s largest meat producer, Hhowever plans were announced in 2011 by Smithfield regarding plant closures in Kinston North Carolina.
Yesterday and activist hedge fund said the pork producers should consider splitting itself up despite its proposed sale. The fund, Starboard Value, wrote in a letter to Smithfield’s board that it believed the company was worth much more separately. Starboard says it owns a 5.7 percent stake, making it one of the largest shareholders in the company.
Layoffs at the facility began in January, with more than 400 workers to be affected by the time plant is closed.
Shares of Smithfield Foods are relatively flat at $33.17 on average volume today.