Cargill Layoffs: Firm Plans To Fire 5% Of Its Employees Worldwide

Cargill Layoffs: While the cuts will not impact the executive team, they will affect several senior leaders at the next level, according to the report citing sources familiar with the matter

Cargill Layoffs: Cargill, along with crop-trading rivals like Bunge Global SA and Archer-Daniels-Midland, has seen earnings decline as bumper crops caused corn and soybean prices to plummet

Source : Pexels

Cargill Layoffs: Cargill, the Minneapolis-based company is planning on eliminating thousands of jobs worldwide after the largest privately held company in the US fell short of its profit targets. The world's largest agricultural commodities trader will reduce approximately 5 per cent of its 164,000 workforce as part of its 2030 strategy, according to an internal memo, reported Bloomberg. 

While the cuts will not impact the executive team, they will affect several senior leaders at the next level, according to the report citing sources familiar with the matter.

Cargill, along with crop-trading rivals like Bunge Global SA and Archer-Daniels-Midland, has seen earnings decline as bumper crops caused corn and soybean prices to plummet. For Cargill, the downturn has been further exacerbated by the smallest US cattle herd in 70 years. Over the past decade, the company has focused on becoming the third-largest beef processor in the US.

“The majority of these reductions will take place this year. They’ll focus on streamlining our organisational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work,” Chief Executive Officer Brian Sikes said in the memo.

Earlier this year, Cargill informed employees that it would streamline its operations, reducing the number of business units from five to three, after fewer than one-third of its divisions met their earnings targets in fiscal 2024. The company also eliminated around 200 tech jobs across various locations.

Cargill’s profits dropped to $2.48 billion for the year ending in May, the lowest since 2015-16, as reported by Bloomberg Opinion’s Javier Blas. This marks less than half of the record net profit of approximately $6.7 billion achieved in the 2021-22 fiscal year.

“We have laid out a clear plan to evolve and strengthen our portfolio to take advantage of compelling trends in front of us, maximize our competitiveness, and, above all, continue to deliver for our customers,” Cargill said in a statement to Bloomberg.