8,000 jobs axed in Cargill layoffs following $4B profit drop

Cargill Inc. announced it will lay off approximately 5% of its global workforce, translating to around 8,000 jobs, as the agricultural giant responds to shrinking profits and a challenging market environment. The cuts predominantly stem from the company’s internal strategy set for 2030, aiming to streamline operations after failing to meet profit targets.

The Minneapolis-based firm, which stands as the largest privately held company in the U.S. and the world’s leading agricultural commodities trader, reported profits of $2.48 billion for the fiscal year ending in May, a significant drop from the record $6.7 billion achieved in the previous year. Factors contributing to this decline include reduced prices for corn and soybeans following bumper crop yields as well as the smallest U.S. cattle herd in nearly 70 years.

CEO Brian Sikes indicated that these layoffs would focus on trimming the organizational structure, removing redundancies, and expanding managerial responsibilities. In an internal memo, he stated, “The majority of these reductions will take place this year.” The layoffs do not include executive positions but may affect a number of senior leaders within the company.

Cargill’s adjustments are aligned with a broader strategy, which saw the company reducing its number of business units from five to three due to disappointing earnings from most sectors. Less than one-third of its divisions reached their fiscal goals in 2024. Previously, Cargill also trimmed about 200 technology-related positions.

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The company is well-regarded for its centralized role in distributing grains, meat, and other agricultural products globally. After initially thriving during the pandemic due to heightened food commodity prices, Cargill is now grappling with falling grocery prices as inflationary pressures ease. The U.S. Department of Agriculture reported that the number of cattle in the country has declined, impacting Cargill’s beef processing endeavors.

Cargill has communicated its commitment to evolve and strengthen its operations. In a recent statement, the company emphasized plans to capitalize on emerging trends and improve competitiveness while delivering better service to customers. Sikes commented, “Cargill can be the world’s most consequential food and agriculture company. And before the end of this decade, we will.”

In addition to the workforce reductions, Cargill announced earlier this year the establishment of a new hub in Atlanta, generating 400 tech and engineering roles. This development reflects its ongoing efforts to adapt to the evolving agriculture and food industry landscape, even as workforce reductions are implemented.

Featured image credit: Cargill