Aurora meat supplier CUTS 340 jobs at Shanghai unit

Bloomberg News

OSI Group LLC, the Autora-based U.S. meat supplier that sold out-of-date products in China, will cut 340 jobs at a Shanghai unit where output hasn't resumed since the government halted operations.

OSI has notified the affected workers at its Shanghai Husi Food unit, it said today in a statement on its website. The closely company said a small number of staff are being kept on to assist with government probes.

"Over the past two months, Shanghai Husi has experienced significant financial and customer losses and the authorities' investigations are still ongoing," OSI said. "It is very unlikely that production will be resumed soon." Some of the meat ended up overseas' at Oak Brook-based McDonald's outlets and at other fast food chains.

Most of the workers have been on paid leave since July, when production was suspended after the discovery it was selling repackaged chicken and beef past its sell-by date. Six Shanghai Husi employees were arrested by China's Public Security Bureau last month amid investigations into activities at the plant. Yum! Brands Inc., owner of KFC and Pizza Hut, terminated its relationship with OSI because of the probe.