Cargill, a global leader in agribusiness, has announced plans to reduce its global workforce by approximately 5%, translating to around 8,000 employees.
The Minnesota-based company says the decision aligns with its long-term strategy unveiled earlier this year.
In a statement to FeedNavigator, the company said:
“We must realign our talent and resources to align with our strategy. Unfortunately, that means reducing our global workforce by approximately 5%. This difficult decision was not made lightly. We will lean on our core value of putting people first as we support our colleagues during this transition.”
Strategic realignment amid industry challenges
Cargill’s 2024 annual report highlights a workforce of over 160,000 employees globally. The job cuts come as part of a broader effort to streamline operations and position the company for future growth.
The statement continued:
“As we look to the future, we have laid out a clear plan to evolve and strengthen our portfolio to take advantage of compelling trends, maximize our competitiveness, and, above all, continue to deliver for our customers.”
Commodity companies like Cargill are grappling with declining prices in key markets, including wheat, corn, and soybeans, which are at four-year lows. Profit margins in crop processing have also tightened, further pressuring the sector.
Timing and impact
According to an internal memo reviewed by Reuters, Cargill CEO Brian Sikes indicated that most of the layoffs will occur this year. While the company’s executive leadership team will remain unaffected, other senior leadership roles are expected to be included, as reported by Bloomberg.
This restructuring underscores the challenges facing the agribusiness sector as it navigates fluctuating commodity markets and evolving global demand.
