Cargill To Cut 5% Of Global Workforce Amid Falling Profits

Cargill, the Minnesota-based food production giant and the world’s largest agricultural commodities trader, plans to lay off approximately 5% of its global workforce as part of a restructuring strategy, CNN reported.

Cargill recently reduced its business units from five to three and eliminated 200 tech positions. I Photo: Cargill

The layoffs, affecting around 8,200 employees, will not impact the executive team but will target senior leadership positions, streamlining operations by removing redundant roles and broadening managerial responsibilities.

"The majority of these reductions will take place this year," said CEO Brian Sikes in a memo, Reuters reported.

This move follows a challenging fiscal year, where less than one-third of the company’s business units met earnings targets.

Cargill recently reduced its business units from five to three and eliminated 200 tech positions. The company’s profits for the fiscal year ending May 2024 dropped to $2.48 billion, the lowest since 2015–2016, compared to a record $6.7 billion in 2021–2022, Bloomberg Opinion noted.