Food production giant Cargill is slashing about 8,000 jobs from its global workforce as grocery prices continue to drop. The Minnesota-based company, which is America’s largest privately held firm and the world’s largest agricultural commodities trader, claims the cuts are part of a “long-term strategy” set earlier this year.
Cargill’s business model relies on distributing grains, meat, and farm products worldwide, making it the middleman between farmers and consumers. The company has profited from pandemic-related inflation and geopolitical turmoil, but now faces declining prices. US cattle numbers have also decreased, according to the USDA, which has led Cargill to invest in its beef processing operations.
Cargill’s profits took a hit last year, falling to $2.48 billion, compared to record $6.7 billion in 2021-2022. The company still boasts over 160,000 employees, but the layoffs will impact an estimated 5% of its global workforce.
In June, Cargill announced plans to hire 400 tech and engineer roles for a new Atlanta hub. CEO Brian Sikes stated that the company aims to “evolve and strengthen” its portfolio, maximize competitiveness, and deliver for customers as it looks to the future.
Source: https://edition.cnn.com/2024/12/02/business/cargill-layoffs-thousands/index.html