Cargill has announced plans to reduce its global workforce by 5%, which, according to the company’s annual report, could equate to around 8,000 jobs. As the world’s leading agricultural products firm, Cargill stated that these job cuts are part of its long-term strategy initiated this year; however, specific reasons for the layoffs were not elaborated upon.
In a statement, the privately-owned meat processor emphasized, “To strengthen Cargill’s impact, we must realign our talent and resources to align with our strategy.” This decision was made with a heavy heart, as the company added, “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.”
Cargill has restructured its operations from five units to three—food enterprise, agriculture and trading, and a “specialized portfolio”—under the leadership of CEO Brian Sikes. Despite a drop in revenue from $177 billion in the previous year to $160 billion in 2024, the company maintains a workforce of 160,000 globally.
The company operates across 70 countries, serving retail, foodservice, and B2B customers. It is particularly significant in the food sector, where it ranks as a major producer of beef and poultry and is a substantial provider of cage-free eggs in the United States, specifically supplying fast-food giant McDonald’s. Additionally, Cargill is involved in the cocoa market, supplying to KitKat manufacturer Nestlé.
Cargill outlined its vision for the future, stating, “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.” The company also reiterated its commitment to transforming rapidly in response to changing market landscapes, aiming to fulfill its mission of nourishing the world.
In terms of its business strategies, Cargill has divested several operations, including selling its Konspol business in Poland to the French poultry firm LDC, as well as a sausage production facility to Smithfield Foods and a beef factory in California to Central Valley Meats. These moves reflect a strategic realignment to stay ahead in the food and beverage industry trends.
Cargill also has various international collaborations, such as its joint venture, C-Joy, with Jollibee Foods in the Philippines, and PT Cahaya Gunung Foods in Indonesia, a partnership with the So Good Food subsidiary of Japfa. In the UK, Cargill is a stakeholder in Avara Foods, a poultry supplier, which has recently shut down several factories amid market pressures.
The ongoing transformations within Cargill occur amidst broader food and drink consumer trends, impacting the overall food and drink business landscape. By aligning its operations to address these trends, Cargill aims to better meet customer demands while positioning itself for future growth.
