Minnesota-based food giant Cargill has shocked the industry with plans to cut 5% of its global workforce, slashing approximately 8,000 jobs. This move follows a sharp 4% drop in commodity prices during Q3 2024.
Cargill, the largest privately held company in the U.S. and the world’s largest agricultural commodities trader, cited the need for a “long-term strategy” to strengthen its impact as the reason behind the layoffs. The company’s CEO, Brian Sikes, emphasized that this difficult decision was not made lightly and is part of a broader plan to realign resources and streamline operations.
The layoffs are expected to impact employees across various levels, although the executive team will remain unaffected. Despite the recent revenue decline, Cargill continues to be a major player in the global food supply chain, operating in 70 countries and generating around $160 billion in annual revenue.
The announcement has sent shockwaves through the industry, highlighting the challenges faced by food giants in a volatile market. Consumers may still experience higher prices, but the pressure on companies like Cargill to maintain profitability is mounting.
Sources:
https://finance.yahoo.com/news/475-layoffs-planned-cargills-mn-061506713.html
https://www.thehrdigest.com/cargill-layoffs-announced-falling-commodity-prices-impede-the-business/
https://apnews.com/article/cargill-layoffs-thousands-job-cuts-27b8882b53fd1c026d17e0570ea49d4b