Tyson Foods intends to close two prepared foods facilities in order to use available production capacity at some of its other plants and cut down costs amidst changing consumer demands.
The plants are located at Jefferson, Wisconsin, and Chicago, Illinois.
This decision will impact approximately 880 people - 480 at the Chicago facility and around 400 at Jefferson plant.
The plants will cease operations in the second half of the company's fiscal year of 2016, which ends on 1 October.
This decision will, however, not have an impact on its other Chicago facilities or offices.
Tyson Foods North American operations president Donnie King said: "We examined many options before we turned down this road.
"This affects the lives of our team members and their families, making it a very difficult decision. But after long and careful consideration, we've determined we can better serve our customers by shifting production and equipment to more modern and efficient locations."
The company stated that it had arrived at this decision due to several factors including changing product requirements, age of the facilities, cost of renovations, and the huge distance between the Chicago plant and its raw material supply base.
Those employees affected by the move will be encouraged to apply for openings within the company.
Tyson Foods stated that it will work with state officials to ensure employees are informed about unemployment benefits and other potential re-training opportunities.
The firm acquired the Chicago facility in 1994. The facility produces tempura chicken, meatballs, crepes, omelets, soups, sauces and Chicken Cordon Bleu.
The Jefferson facility manufactures sliced pepperoni and ham for pizza toppings, sliced pepperoni and salami for deli and foodservice applications.
This facility was part of Tyson Foods' acquisition of IBP in 2001.
