The nation's largest poultry producer will reduce capacity at its Live Oak, Fla., chicken processing plant, which employs 1,400 workers, by eliminating the second shift, Pilgrim's Pride spokesman Ray Atkinson told Meatingplace.

Pilgrim's Pride also cut 265 non-production jobs in the first quarter, it said in a filing Thursday with the U.S. Securities and Exchange Commission. It said it was considering further ways to reduce costs that could include: eliminating more jobs, selling assets, idling facilities, consolidating operations, and relocating or reducing production.

In 2008, the company cut about 2,300 production jobs by closing chicken processing plants in Siler City, N.C., Clinton, Ark., and Bossier City, La., and consolidating operations into other facilities.

Pilgrim's Pride, which filed for bankruptcy protection after facing soaring feed costs, falling chicken prices and a big debt load, said it lost $228.8 million, or $3.09 a share, in the first quarter ended Dec. 27, compared with a loss of $32.33 million, or 49 cents a share, a year ago.

First-quarter sales fell to $1.88 billion from $2.05 billion.

The company, based in Pittsburg, Texas, said market prices for chicken have stabilized since the end of 2008 but have not yet improved enough to offset the high cost of feed ingredients. Prices improved after many producers cut production last year in an effort to correct the oversupply of chicken.

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