Cargill, a leading agribusiness firm, has announced significant layoffs affecting thousands of its workforce. The company revealed this week that it plans to reduce its global employee count by approximately 5%. In a recent statement, Cargill indicated that these job cuts are part of a comprehensive strategy aimed at enhancing its operational effectiveness and reallocating resources for better performance.
Based in Minnesota, Cargill did not elaborate on the specifics of the layoffs. However, their annual report projected that with over 160,000 employees globally, this reduction could impact around 8,000 positions. Being a privately held entity, Cargill does not routinely disclose its financial information to the public. Still, its 2024 report highlighted operations in 70 countries with sales across 125 markets, generating around $160 billion in revenue, a decline from $177 billion the previous year.
The announcement of layoffs comes at a time when the agricultural sector is grappling with falling prices for various commodities. The costs of essentials like wheat and vegetable oil have decreased from their inflated levels during the COVID-19 pandemic and ongoing global issues, such as the conflict in Ukraine. Though consumer prices remain elevated compared to several years ago, the changes in commodity pricing are exerting additional pressure on food giants such as Cargill.
Cargill expressed its commitment to adapt swiftly to the evolving market conditions, stating, “As the world around us changes, we are dedicated to transforming even faster to deliver for our customers and fulfill our purpose of nourishing the world.” The company acknowledged that the decision to downsize its workforce was challenging and not made lightly.
As reported by Bloomberg, which first highlighted the layoffs, Cargill’s Chief Executive Officer Brian Sikes informed staff that most of the cuts would unfold throughout this year. It was also noted that the layoffs would not extend to the executive team, although several senior leaders would be affected.
Despite the recent dip in revenue, Cargill has once again been recognized by Forbes as the largest private company in the United States, achieving this distinction for the fourth consecutive year, and marking the 37th time overall since the rankings began in 1985.