Cargill layoffs 5% of Global Workforce Amid Profit Decline
Why is the reason for Cargill layoffs?
Cargill Inc., the world’s largest agricultural commodities trader, is set to layoff 5% of its global workforce—approximately 8,000 jobs. This decision follows a sharp drop in profits, which fell to $2.48 billion in fiscal 2024, down from a record $6.7 billion in 2021-22, marking the company’s lowest earnings since 2015-16.
The downturn is driven by falling crop prices and a shrinking U.S. cattle herd, which has reached its lowest levels in 70 years. As the third-largest U.S. beef processor, Cargill has been significantly impacted by reduced margins in the beef industry. Competitors like Tyson Foods and Archer-Daniels-Midland Co. are also grappling with similar pressures from abundant crop supplies and declining commodity values.
Streamlining Operations
CEO Brian Sikes announced in an internal memo that the layoffs will focus on reducing duplication, expanding managerial responsibilities, and streamlining the organizational structure. While the executive team will remain intact, senior leadership positions will be affected. Most job cuts are expected this year.
This move follows earlier measures, including consolidating Cargill’s business units from five to three and eliminating 200 tech roles. Only a minority of the company’s business units met earnings targets in fiscal 2024, prompting the restructuring.
What’s Next for Cargill?
Cargill remains optimistic about its future despite the challenges. The company stated:
“We have laid out a clear plan to evolve and strengthen our portfolio.”
While the agricultural commodities sector faces turbulent times, Cargill’s focus on efficiency and adaptability signals its intent to remain competitive in a tough market.
What Should Cargill Employees Know About Severance?
If you’re a Cargill employee in Canada affected by the company’s recent layoffs, understanding your severance rights is crucial. Severance pay is typically based on factors such as your role, length of service, and age. For non-unionized employees, severance packages can sometimes extend up to 24 months’ pay, depending on the circumstances.
At Whitten & Lublin, our employment lawyers are experienced in helping employees secure fair severance entitlements. We provide expert guidance to ensure you receive the compensation you deserve during this challenging time. If you’ve been impacted by Cargill’s workforce reductions, contact us online or by phone at (416) 640-2667.