American meat processor OSI Group has slashed 340 jobs at its Shanghai Husi Food plant, which is under investigation for allegedly selling expired meat to McDonald's and KFC.
The move came as the company witnessed significant financial and customer losses over the past two months.
OSI plans to retain some of the workers in order to assist the authorities in the investigation process. However, plans to resume operations at the plant are uncertain.
Of the total workers being removed, 226 are directly employed by Shanghai Husi, while 114 are contractors to Shanghai Husi.
OSI said that it is working closely with government agencies to ensure that severance payments will be made to these workers in accordance with all applicable laws, as well as company policies.
Yum and Burger King recently ended their partnership with OSI in China.
