As agricultural commodity prices decline, Cargill, the large food processing conglomerate based in Minnesota, is laying off around 5% of its global workforce.
According to Forbes, Cargill is the biggest privately held company in America and the biggest dealer in agricultural commodities worldwide. The company said in a statement to CNN on Monday that the changes are a component of a long-term plan that was set earlier this year.
Cargill has a significant stake in the ingredients industry. To put it simply, the company distributes meat, grains, and other agricultural products globally by acting as a middleman. Due to inflation and geopolitical unpredictability that caused food prices to skyrocket, it had made a significant amount of money during and after the pandemic. However, grocery prices are now declining.
According to the US Department of Agriculture, there are less horses in the country. Cargill has made investments to grow into one of the biggest beef processors in North America.
Earlier this year, Bloomberg revealed that the infamously silent giant’s profits for the fiscal year that concluded in May had fallen to $2.48 billion. This was the lowest profit since 2016 and less than half of the record $6.7 billion it made in 2021–2022.
Cargill employs more than 160,000 people, according to its 2024 report, however it doesn’t often release financial data. This implies that about 8,000 cuts will be made. Since 2023, Brian Sikes has been the company’s president and CEO.
Cargill stated in June that 400 IT and engineering jobs would be created, along with the creation of an Atlanta hub.
According to a statement sent to CNN, “When we look to the future, we have outlined a clear plan to evolve and strengthen our portfolio in order to take advantage of compelling trends in front of us, maximize our competitiveness, and, above all, continue to deliver for our customers.”
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Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.