Granja Tres Arroyos Confirms 255 Layoffs at Entre Ríos Plant Amid Deepening Financial Crisis
Granja Tres Arroyos, Argentina’s leading poultry producer, has confirmed the dismissal of 255 workers at its plant in Concepción del Uruguay, Entre Ríos, according to reporting from Diario de Cuyo. The facility, which typically employs around 700 people, has seen its production completely paralyzed since May, marking a severe escalation in the company’s ongoing operational and financial turmoil.
The sweeping layoffs eliminate more than a third of the staff at the Entre Ríos facility. In official termination notices sent to employees, management attributed the cuts to extraordinary circumstances outside of the company’s control that severely depressed operational activity, as reported by Diario de Cuyo. The firm invoked Article 247 of Argentina’s Contract of Employment Law, which permits reduced severance obligations during periods of work scarcity or suspension not attributable to the employer.
Weighing Debt, Trade Restrictions, and Slumping Domestic Prices
Behind the sudden reduction in headcount lies a staggering debt load and a volatile macroeconomic environment. Granja Tres Arroyos is currently navigating a complex financial restructuring process to address a debt estimated at over US$350 million, as documented by Diario de Cuyo. Company officials pointed to multiple compounding pressures that crippled their business model.
Chief among these challenges is the sharp contraction in international exports. Outbreaks of avian influenza beginning in 2023 triggered stringent global trade restrictions that shut Argentine poultry out of key markets, including China. With foreign shipments drastically reduced, a massive volume of poultry was abruptly redirected back into the domestic market. This sudden oversupply caused domestic prices to plummet within Argentina even as operating costs climbed steadily.
Management maintained that prior to issuing the pink slips, the company attempted various cost-cutting measures and operational adjustments to preserve jobs. Ultimately, leadership argued those interventions fell short against the dual weight of depressed margins and ongoing workplace friction that further hampered slaughter and processing volumes.
Wider Repercussions Across Argentina’s Poultry Heartland
The crisis is far from isolated to a single province. In Río Cuarto, Córdoba, Granja Tres Arroyos extended the operational paralysis of its Avex plant for an additional 15 days, keeping the facility shuttered for a full month and impacting roughly 350 workers, according to Diario de Cuyo. These shutdowns represent a dramatic contraction for an agroindustrial giant that once employed thousands of people at its peak expansion and possessed the capacity to process hundreds of thousands of birds daily.
Labor organizations have mounted a fierce pushback against the downsizing. The Federation of Workers of the Food Industries (FTIA) and the Concepción del Uruguay Food Industry Workers Union (STIA) formally rejected the 255 layoffs. Union representatives noted that the affected personnel include elected shop stewards and pointed out that workers have endured delays exceeding five fortnights in receiving basic wage payments.
As tripartite talks continue between union delegates, corporate leadership, and provincial authorities in Entre Ríos, Buenos Aires, and Córdoba, the future of Argentina’s poultry flagship remains perilous.
