Global Trading House Cargill to Cut 5% of Staff, or Around 8,000 Jobs
Global trading house Cargill announced plans to cut around 5% of its staff, or approximately 8,000 jobs, after revenue slumped in its most recent fiscal year due to crop prices hitting multi-year lows. The company, which has more than 160,000 employees, reported revenue of $160 billion for its 2024 fiscal year, down from a record $177 billion in the previous year.
The job reductions will mainly take place this year, according to a memo reviewed by Reuters from Cargill’s president and CEO, Brian Sikes. The move is part of a shift in strategy at the nearly 160-year-old company, which will focus on streamlining its organisational structure by removing layers, expanding the scope and responsibilities of managers, and reducing duplication of work.
Cargill, an agricultural merchant, is under pressure as prices of commodity crops such as wheat, corn, and soybeans have dropped to near four-year lows, and crop processing margins have shrunk. The company reported that less than one-third of its businesses met their earnings goals in the last fiscal year.
The job cuts are part of a restructuring effort announced in August, which aims to streamline operations into three units from five as part of Cargill’s 2030 strategy. The company will hold a meeting on December 9 to share more information about the restructuring and will provide next steps for affected employees.