Cargill is set to lay off approximately 5% of its global workforce. With more than 160,000 employees worldwide, around 8,000 employees may be affected. The move comes in the wake of weak financial performance during fiscal 2024 and a restructuring of the business.
“For nearly 160 years, Cargill has been a critical connector of the global food system. Earlier this year, we set a long-term strategy that continues that legacy, while carrying forward the values and core strengths that have defined our success from the beginning. 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 in front of us, maximize our competitiveness, and, above all, continue to deliver for our customers. As the world around us changes, we are committed to transforming even faster to deliver for our customers and fulfill our purpose of nourishing the world,” the company told Aquafeed.com in a statement.
“To strengthen Cargill’s impact, 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,” the company said.
Crop trading companies like Cargill, ADM, and Bunge are facing pressure as prices for key commodity crops, including wheat, corn, and soybeans, have dropped to near four-year lows due to abundant supplies of soybeans and corn. Additionally, crop processing margins have tightened.
Cargill, a major U.S. beef processor, is also grappling with soaring cattle costs. Drought conditions have reduced grazing lands, leading ranchers to cut the national herd to its smallest size in decades.
In August, Reuters reported that Cargill planned to streamline operations into three units – Food, Ag & Trading, and Specialized Nutrition, mainly focused on animal nutrition and health – instead of five. The company recently rebranded all its micronutrition solutions and services into a new Micronutrition and Health Solutions brand.
