Cargill Is Slashing 5% of Workforce, Leaving Thousands Jobless Worldwide

Thousands of Cargill employees will soon be out of a job. The food production behemoth is laying off nearly 5% of its global labor force. Based on reported company information, that figure represents about 8,000 jobs.

It’s unclear what company positions and locations will be impacted. However, recent reports suggest members of Cargill’s executive team will be unaffected.

“The majority of these reductions will take place this year,” CEO Brian Sikes said in an internal memo seen by Bloomberg. “They’ll focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work.”

While Cargill is a massive company, with an estimated 160,000 employees, it is privately held, meaning it does not need to publicly disclose financials. Yet, some company information has come out over the years. One estimate revealed a significant decline in company revenue. For fiscal year 2024, which ended in May, the company purportedly brought in almost $160 billion, which was substantially lower than 2023’s $177 billion revenue estimate.

Falling Commodity Prices Damaging Cargill and the Agribusiness Industry

Cargill supposedly informed workers in August that the company was struggling. Reportedly, the company announced a plan to reduce its business units from five to three. About 200 tech jobs were eliminated around the same time.

“We have to simplify and streamline our operations, improve the speed and efficiency of our work, more competitively manage our costs and capital, and respond to asks from you and our customers to be an easier company to work for and with,” said Sikes, per Bloomberg.

The agriculture industry, as a whole, is hurting right now. As prices drop for commodities such as wheat and vegetable oil, so do profits. Cargill competitors Bunge Global SA and Archer-Daniels-Midland Co. have reported earnings declines as corn and soybean prices have also dropped. Cargill, which is the nation’s third-largest beef processor, has been purportedly trying to adjust to a shrinking U.S. cattle herd. The company is also among a list of meat suppliers being sued for allegedly inflating the price of beef.