[Cargill, the largest privately held company in the United States and the world’s largest agricultural commodities trader, is laying off about 5% of its global workforce as food commodity prices drop. The company had profited heavily during the pandemic and its aftermath due to inflation and geopolitical turmoil throwing food prices into disarray. However, with grocery prices now dropping, the company is taking the decision to reduce its workforce to ensure its long-term competitiveness.
The company’s president and CEO, Brian Sikes, said in a statement that the company is looking to the future and has laid out a plan to evolve and strengthen its portfolio to take advantage of trends in the industry and deliver for its customers.
Cargill had made record profits of $6.7 billion in 2021-2022, but its profits had fallen to $2.48 billion in the fiscal year ending in May. The company has over 160,000 employees globally, which means the 5% reduction will affect an estimated 8,000 employees.
Despite the layoffs, Cargill has been investing in its tech and engineering capabilities and announced plans to open a hub in Atlanta earlier this year. The company’s future plans include hiring for 400 tech and engineer roles, highlighting its focus on innovation and growth.
Cargill’s decision to lay off a significant number of employees comes at a time when the agricultural industry is facing challenges due to a decline in the number of US cattle. However, the company is adapting to these changes and has identified opportunities for growth and profitability in the market.
Source link