America’s largest private company and the world’s largest agricultural commodities trader is laying off 5% of its global workforce as food prices drop, according to an internal memo obtained by Reuters on Tuesday, Dec. 3.
Cargill also confirmed the move on Monday, Dec. 2, to CNN, that it plans to let go of an estimated 8,000 employees as a result of falling profits.
The trading giant says workforce cuts will take place this year as it streamlines its organizational structure after missing its internal earnings goals. The move is reportedly part of Cargill’s 2030 strategy.
The corporation maintains “impacts to our operations and frontline teams will be kept to a minimum” as the business continues delivering products to customers.
Cargill distributes grains, meats and other agricultural products around the globe. The company reportedly has more than 160,000 workers.
Cargill pulled in record profits during the COVID-19 pandemic, as inflation and conflicts around the world drove up the price of farm products.
With an end to the COVID-19 pandemic, and as inflation slows, the company’s profits reportedly fell to $2.4 billion in the fiscal year ending in May 2024, which is less than half of the record $6.7 billion the company made from 2021 to 2022, and its lowest profit since 2016.
Adding to troubles, Cargill has reportedly invested heavily in one of the largest beef processors in North America as the U.S. Department of Agriculture reports the number of cattle across the United States is down.
