Butterball announces layoffs in Carthage

Raleigh, N.C.-based Butterball LLC will lay off 75 workers at its Carthage plant in March, the company said today.

The turkey processing plant is combining two deboning shifts into one in response to decreasing demand and rising production costs, according to a company news release. The layoffs represent approximately 11 percent of the Carthage plant's 685-member staff.

"I am deeply saddened that we must cut back employees due to several factors, most notably the increased cost of corn," Butterball CEO Keith Shoemaker said in the release. "This dramatic increase (in corn costs) is caused largely by government policies providing mandates and subsidies for blending corn-based ethanol. It is unfortunate for our workers that the cost of corn for animal feed is resulting in production cuts and layoffs at the very same time the ethanol industry is seeking a government bailout."

Butterball LLC employs about 6,000 workers at seven plant locations and corporate offices across the country. No other layoffs are planned at this point, spokesman Kipp Bodnar said.