(Source : AP)– Agribusiness giant Cargill has confirmed that it will lay off approximately 8,000 employees globally, marking a 5% reduction in its workforce. The company, based in Minnesota, said the decision is part of a long-term strategy to “strengthen Cargill’s impact” by realigning resources to better meet changing business demands.
In a statement to The Associated Press, Cargill emphasized that the layoffs are not a reflection of immediate financial instability, but rather a move to adapt to evolving market conditions. The company, which operates in 70 countries and generates around $160 billion in annual revenue, has faced challenges due to falling commodity prices in the agriculture sector. These price drops, influenced by factors like the end of pandemic-related price surges and the ongoing geopolitical tensions such as the war in Ukraine, have put pressure on food producers like Cargill.
The layoffs are expected to primarily affect non-executive positions, with a significant portion of cuts happening this year. Cargill’s CEO Brian Sikes conveyed the difficult nature of the decision to employees, though he reassured that senior leadership, including the executive team, would not be impacted.
Despite a dip in revenue compared to the previous year, Cargill remains the largest privately-held company in the U.S. for the fourth consecutive year, according to Forbes. The company’s restructuring is seen as a step to position itself for the future amid the changing agricultural landscape.
