Food producer Cargill said Tuesday it will cut about 8,000 jobs globally after falling crop prices plunged profits at the largest privately held company in the US.
The Minneapolis-based firm, the world’s largest agricultural commodities trader, plans to cut 5% of its 164,000-person workforce.
Most of Cargill’s job cuts will happen this year, company Chairman and CEO Brian Sykes said in a memo reviewed by Reuters.
“They will focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work,” Sykes said in the memo.
The job cuts will not affect executive staff, though they will hold several senior-level positions next up the ladder, people familiar with the matter said. Bloomberg, which first reported the layoffs,
Cargill, which began as a single grain warehouse in 1865, reported revenue of $160 billion for its 2024 fiscal year ending in May — a nearly 10% decline from the previous year’s record $177 billion.
The company recorded a profit of $2.5 billion in the same year, its lowest profit since the 2015–16 period. according to bloombergThis is less than half of the $6.7 billion net profit earned by the company in the financial year 2021-22.
Cargill and other crop trading companies such as Bunge Global SA and Archer-Daniels-Midland Co. have faced a hit to profits as wheat, corn and soybean stockpiles have sent prices to near four-year lows.
It has been particularly difficult for Cargill, which also suffered its smallest US cattle herd loss in seven decades. The company is the country’s third-largest beef processor.
Earlier this year, the food supplier told employees it would reduce its business units from five to three because less than a third of its divisions are operating in fiscal 2024, according to a memo reported by multiple media outlets. Have achieved your income targets.
Cargill also cut about 200 technology jobs at its locations.
“We have set out to grow and strengthen our portfolio to take advantage of the attractive trends we face, maximize our competitiveness and, above all, continue to deliver for our customers,” Cargill told The Post in a statement. Have a clear plan.”
Sykes took charge of Cargill early last year as the company faced declining cattle herds and deteriorating profit margins.
It seems beef suppliers shouldn’t expect relief any time soon. Tyson Foods CEO Donnie King said earlier this month that his company has not yet seen signs that cattlemen are rebuilding their herds.
