Cargill Inc. plans to eliminate 5% of its global workforce of 164,000, or around 8,000 jobs, as the world’s largest agricultural commodities trader grapples with falling profits amid lower crop prices and a shrinking US cattle herd.
The job cuts at the privately held company come after profits fell to $2.48 billion in fiscal year 2024, less than half its record $6.7 billion in 2021-22 and the lowest since 2015-16.
CEO Brian Sikes said in an internal memo that most cuts will occur this year, focusing on streamlining organizational structure, expanding managers’ responsibilities, and reducing work duplication. The reductions won’t affect the executive team but will impact senior leadership positions.
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The Minneapolis-based firm had already consolidated its business units from five to three after fewer than one-third met earnings targets in fiscal 2024. It previously eliminated about 200 tech positions.
Cargill, which became the third-largest US beef processor over the past decade, has been particularly squeezed by the smallest American cattle herd in 70 years. Industry rival Tyson Foods recently indicated no signs of herd rebuilding.
“We have laid out a clear plan to evolve and strengthen our portfolio,” Cargill said in a statement to Bloomberg, as major competitors Bunge Global SA and Archer-Daniels-Midland Co also face declining earnings amid abundant crops pushing down commodity prices.
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