Cargill announces 5% global workforce reduction amid strategic realignment

USA – Cargill, the world’s largest agricultural products company, has announced plans to cut 5% of its global workforce, equating to approximately 8,000 jobs.

The decision, part of Cargill’s “long-term strategy” introduced this year, underscores a significant organizational shift aimed at aligning talent and resources with its revised business priorities.

In a statement, the privately-owned company emphasized its commitment to supporting employees during this challenging period.

“To strengthen Cargill’s impact, we must realign our talent and resources to align with our strategy,” the company said.

“Unfortunately, that means reducing our global workforce by approximately 5%. This difficult decision was not made lightly. We will lean on our core value of putting people first as we support our colleagues during this transition,” it added.

Under CEO Brian Sikes, Cargill restructured its operations this year, consolidating five operational units into three core divisions: food enterprise, agriculture and trading, and a specialized portfolio. The move is designed to enhance the company’s competitiveness and capitalize on evolving market trends.

“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,” Cargill said.

The company has faced financial pressures despite its strategic focus, with annual revenue declining from US$177 billion in 2023 to US$160 billion in 2024, according to its latest report.

Since February, Cargill has laid off manufacturing workers at a Nashville beef plant, sold a California beef processing facility and offloaded a dry sausage plant to competitor Smithfield. Cargill also sold eight grain facilities to agribusiness CHS.

In the UK, Cargill co-owns Avara Foods with Faccenda Foods, a partnership that has seen factory closures as part of broader cost-saving measures.

CEO Brian Sikes wrote in a letter to stakeholders in August that the company is navigating an “extremely challenging” year. Cargill’s revenue slump broke a two-year streak of record earnings, and represented the lowest profit levels in close to a decade.

“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,” a Cargill spokesperson said in a statement to Agriculture Dive.

 “To strengthen Cargill’s impact, we must realign our talent and resources to align with our strategy.”

Cargill, which operates in 70 countries and employs 160,000 people, remains a dominant force in agricultural and food markets, supplying major global clients such as McDonald’s and Nestlé.

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