Another multinational company, another pledge towards “streamlining.”
Cargill has revealed that it plans to cut 5% of its global workforce – most of which will take place in the coming year. It’s a move that will result in the elimination of some 8,000 jobs.
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Minnesota-based Cargill, a food company with a heavy footprint in trading and distributing grains and other commodities, is facing cost pressures. According to Reuters, Cargill and similar companies have seen prices for wheat, corn and soybeans drop to a four year low, resulting in shrinking margins.
The company, which is regarded as the largest privately held company in the United States, released earnings reports that reflected that decline, with revenue falling from $177 billion in FY 2023 to $160 billion for 2024.
Earlier this year, Bloomberg revealed that the company’s profits had fallen to $2.48 billion – from a high of $6.7 billion in 2022.
Reuters reported seeing a company memo that indicated less than one-third of Cargill’s businesses met earnings goals in the last fiscal year.
Job cuts, according to a memo issued by CEO, Brian Sikes, mean to target structural inefficiencies, by “removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work.”
Reports say the job reductions won’t impact the company’s executive team, but will affect a number of next level senior leaders.
The company has further plans to restructure, saying previously that it would condense its business units from five to three by 2030.
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