New York () – Cargill, the Minnesota-based food manufacturing giant, is laying off about 5% of its global workforce due to falling food commodity prices.
Cargill is the largest private company in the United States, according to Forbes, and is also the largest trader of agricultural products in the world. In a statement to on Monday, the company said the changes are part of “a long-term strategy” established earlier this year.
Cargill is heavily involved in the ingredients business. In simpler terms, the company is the middleman that distributes grain, meat and other agricultural products around the world. It benefited greatly during and after the pandemic, thanks to inflation and geopolitical turmoil that threw food prices into disarray. But now, the grocery prices are going down.
In addition, the number of cattle in the US has decreased, according to the US Department of Agriculture. Cargill has invested to be one of the largest beef processors in North America.
Bloomberg reported earlier this year that the famously secretive giant’s profits had fallen to $2.48 billion in the fiscal year that ended in May. This was less than half of the record $6.7 billion it earned from 2021 to 2022 and also the lowest profit since 2016.
Cargill has more than 160,000 employees, according to its 2024 report, although it does not regularly publish financial reports. That means there will be an estimated 8,000 layoffs. Brian Sikes has been the company’s president and CEO since 2023.
In June, Cargill announced it was opening a center in Atlanta and hiring for 400 technology and engineering positions.
“As we look to the future, we have established a clear plan to evolve and strengthen our portfolio to take advantage of the attractive trends in front of us, maximize our competitiveness and, above all, continue to serve our clients,” the company said in its communicated to .
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