Agribusiness Giant Cargill to Layoff 5% of its Workforce

Following a rare income decline, agribusiness giant Cargill, which employs 160,000 people worldwide, has announced the layoff of approximately 8,000 employees.

An internal message to employees obtained by Reuters stated that most layoffs would occur this year.

“They will focus on streamlining our organisational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work,” Brian Sikes, our CEO, told employees in a memo.

Bloomberg reported Monday, citing sources familiar with the matter, that the changes would not affect Cargill’s management team but would include several “next-level senior leaders.”

The Minneapolis-based enterprise is the largest privately held business in the United States.

In August, Cargill reported revenue of $160 billion, a decrease from $177 billion in 2023 and $165 billion in 2022. Profits also plummeted to $2.48 billion in the fiscal year that ended in May from a record $6.7 billion the previous year.

As a result, the company announced that it would reduce the number of business units from five to three, integrating the Food and Bio divisions with the Protein and Salt teams to become Food. Cargill has not explained what the restructuring means for its Wichita business and personnel.

The 160-year-old corporation and beef, poultry, salt, and eggs processors are major commodity dealers.

Cargill Protein North America is based in Wichita, where the division has existed for over 40 years. As of 2021, Cargill claimed to have roughly 1,000 employees in Wichita.

Many have linked the revenue decline to lower pricing for key crops such as corn and soybeans, which had risen dramatically during the pandemic. The United States Department of Agriculture recorded the smallest cow herd in nearly seven decades.

According to the trade newspaper Agriculture Dive, the company laid off almost 200 employees in June as part of its sale of a California meat-processing plant.

Cargill mentioned the consolidation in a statement about the layoffs.

“Earlier this year, we set a long-term strategy that continues that legacy, while carrying forward the values and core strengths that have defined our success from the beginning,” the statement read.

“As we look to the future, we have laid out a clear plan to evolve and strengthen our portfolio to take advantage of compelling trends, maximize our competitiveness, and continue to deliver for our customers.

As the world around us changes, we are committed to transforming even faster to deliver for our customers and fulfill our purpose of nourishing the world.

“To strengthen Cargill’s impact, we must realign our talent and resources to align with our strategy.”

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