Cargill To Lay Off Around 8,000 Employees Globally

Cargill To Lay Off Around 8,000 Employees Globally

The cost-cutting plan comes as Cargill faces falling profits.

Minnetonka-based food production giant Cargill, the nation's largest private company, will lay off approximately 5% of its global workforce.

The company said the move was being taken as part of a new strategy to "maintain competitiveness" amid a decline in food commodity prices.

"For nearly 160 years, Cargill has been a critical connector of the global food system," the company shared in a statement. "Earlier this year, we set a long-term strategy that continues that legacy, while carrying forward the values and core strengths that have defined our success from the beginning."

Cargill's latest annual report states the company employs more than 160,000 workers globally, meaning a 5% workforce reduction will represent around 8,000 jobs lost.

According to Twin Cities Business Magazine, 475 employees will be impacted at Cargill's Wayzata headquarters.

According to CNN, Cargill's profits benefited heavily from inflation and other shifts in the geopolitical landscape impacting global food supply during the pandemic, but now the company is feeling pressure from a drop in grocery prices.

Bloomberg reported that Cargill posted a profit of $2.48 billion for the year ending in May. This was the company's lowest profits since 2016, and less than half of the record profits recorded in 2021 to 2022.

SOURCE: Bring Me The News