WPBN: As food commodity prices decline, Cargill, the massive food processing corporation based in Minnesota, is laying off around 5% of its global workforce.
According to Forbes, Cargill is the biggest privately held corporation in America and the biggest seller of agricultural commodities globally. The business stated in a statement on Monday that the adjustments are a part of “a long-term strategy” that was established earlier this year.
Cargill is heavily involved in the ingredients industry. Put more simply, the business acts as a middleman in the global distribution of meat, wheat, and other agricultural products.
It had benefited greatly from the pandemic and its aftermath, when food prices were thrown into chaos by inflation and geopolitical unrest. However, the cost of groceries is now decreasing.
Additionally, the US Department of Agriculture reports that the number of cattle in the United States is declining. Cargill has made investments to rank among North America’s biggest beef processors.
The renownedly silent giant’s profits dropped to $2.48 billion in the fiscal year that ended in May, according to a Bloomberg story earlier this year. This was the lowest profit since 2016 and less than half of the record $6.7 billion it made in 2021–2022.
Despite not regularly releasing financial reports, Cargill’s 2024 report stated that it employs over 160,000 people. This implies that an estimated 8,000 cuts will be made. Since 2023, Brian Sikes has served as the company’s president and chief executive officer.
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Cargill stated in June that it was hiring for 400 tech and engineer positions and that it was creating a hub in Atlanta.
According to the company’s statements, “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 in front of us, maximize our competitiveness, and, above all, continue to deliver for our customers.”
