It will consolidate the production at its plant in Chattanooga, Tenn.
Pilgrim's Pride in December filed for Chapter 11 bankruptcy protection and is in the process of reorganizing.
The company's hatchery in Cohutta, Ga., will stay open but as part of the Chattanooga complex or other nearby operations, Pilgrim's Pride said.
About 120 independent contract growers who supply to the Dalton plant will be transitioned to the Chattanooga plant or other nearby plants within about 90 days.
"We will continue to look for opportunities to improve our cost structure as we reorganize the company," said Don Jackson, president and CEO, in a statement.
Pilgrim's Pride operates a poultry processing plant on Industrial Boulevard in Gainesville and a hatchery on U.S.129 in Hall County, near Talmo.
