Minnetonka-based Cargill is cutting approximately 8,000 jobs, about 5% of its global workforce, as the company grapples with declining sales and profits. The layoffs will affect various parts of the organization, including headquarters staff, and are part of a broader corporate restructuring plan.
The move comes after annual profits fell to their lowest level in nearly a decade, prompting Cargill’s CEO Brian Sikes to announce a 2030 plan aimed at boosting margins and competitiveness. Sikes stated that the layoffs will enable the company to “realign its talent and resources” with its strategy.
While the cutback has sparked concerns about deeper problems with Cargill’s cash-flow projections, CEO Sikes remains committed to his vision of making the company a reliable growth engine by 2030. The restructuring plan is expected to result in significant cost savings, as well as potential divestitures and sales of non-core assets.
Cargill’s global workforce has grown significantly since 2017, but the company’s recent performance and market trends suggest that it needs to adapt to changing conditions. As a major player in the commodities industry, Cargill will continue to face challenges related to commodity prices, trade disruptions, and environmental concerns.
Source: https://www.startribune.com/cargill-layoffs-8000-5-percent-global-workforce-minnesota-ag-trader-minnetonka-hq/601190081