The world’s largest commodity trader plans to slash about 8,000 of its global 164,000-person workforce as part of a sweeping effort to cut costs and restructure.
Most of Cargill's job cuts would take place this year, according to President and CEO Brian Sikes in a memo reviewed by Reuters.
“They will focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers and reducing duplication of work,” he said.
Earlier this year, Sikes announced the restructuring of the company from five business units to three divisions: agriculture and trading, food enterprise and specialized portfolio. Crop prices have hit multi-year lows leading to a revenue slump for the 160-year-old company.
Cargill is also the third largest beef producer in the U.S.
The announcement comes a day after Tyson Foods – the largest meat company in the U.S. – said it would close its Emporia, Kansas, beef processing facility effective Feb. 14. A Worker Adjustment Retraining Notification Act notice posted by the Kansas Department of Commerce on Dec. 2 said the closure will displace 809 workers.
Kansas Sen. Roger Marshall said the news “breaks my heart.”
“This facility is one of the largest employers in the region, and its closure will leave hundreds unemployed. This is devastating news for these families and the community, especially at Christmas time,” he said.
John Deere also announced another round of layoffs at the Waterloo Works tractor manufacturing facility, the company’s largest plant. A Worker Adjustment and Retraining Notification released Dec. 3 said 112 workers will be laid off effective Jan. 5.
It marks Deere’s sixth series of layoffs this year, totaling 1,075 workers terminated as farm income is projected to dip into 2025.
ADM, CNH Industrial, Bridgestone-Firestone Ag and other agricultural companies have announced layoffs this year to reduce costs as a result of the farm economy downturn.
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