Tyson Foods has begun slowing down its production of chicken-based food products and shuttering facilities after the company pushed its plants and staff to increase the production of certain items following the lessened impact of the COVID-19 pandemic, according to The Wall Street Journal.

While the pandemic eased, the demand for chicken grew because people were cooking and eating out more. In turn, chicken companies, like Tyson Foods, had to increase their production levels to match the rising demand. However, the company ended up miscalculating demand levels in late 2022, leading to excess inventory rates.

To reduce the bullwhip effect — a COVID-19-based phenomenon where small demand fluctuations at the retail level can cause greater demand instability at higher levels — Tyson has been forced to lay off employees and change the way it raises its birds. Tyson also closed down its Van Buren, Arkansas plant in March, one of six shutdowns planned by the organization to cut costs as it deals with flat demand and a drop in wholesale prices.

Still, Tyson officials claim the enterprise is improving because the company experienced only minor losses in its chicken business in consecutive quarters.

“As far as I know, that’s the most improvement that has ever taken place in our chicken business,” said CEO Donnie King during an August internal meeting with Tyson employees.

The company's rival, Pilgrim’s Pride Farms, has done well financially while Tyson has struggled after the organization made $50 million in U.S. operating income during the most recent quarter. Though the organization’s stock has performed better than Tyson’s, Pilgrim’s shares are down 12% over the last 12 months, a sign that chicken companies around the world are suffering from excess inventory levels and other problems.