Cargill Inc. is cutting thousands of jobs globally after the largest privately held company in the U.S. missed profit targets.
The Minneapolis-based firm, the world’s largest agricultural commodities trader, will cut about 5% of its 164,000-strong workforce as part of its 2030 strategy, according to an internal memo seen by Bloomberg. The reductions won’t affect its executive team, but will impact a number of next level senior leaders, according to people familiar with the matter, who asked not to be identified discussing internal matters.
Cargill and crop-trading rivals such as Bunge Global SA and Archer-Daniels-Midland Co. have seen earnings shrink after bumper crops sent corn and soybean prices tumbling. For Cargill, the squeeze has been compounded by the smallest U.S. cattle herd in seven decades. The company has spent much of the past decade turning itself into the third-largest U.S. beef processor.
“The majority of these reductions will take place this year,” Chief Executive Officer Brian Sikes said in the memo. “They’ll focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work.”
Cargill had already told employees earlier this year that it would reduce the number of business units to three from five after less than one-third of its businesses reached their earnings goals in fiscal 2024. It also cut about 200 tech jobs in various locations.
Source: Bloomberg
