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Cargill, the largest U.S. private company, is laying off about 8,000 employees, or 5% of its global workforce, due to pressure from lower commodity prices.
The Minnesota-based agricultural giant said the cuts align with its long-term strategy outlined earlier this year. This comes as softened prices for crops like wheat and soybeans threaten industry profit margins.
“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 said in a statement.
The World Bank reported a 4% drop in commodity prices in Q3 2024, with declines across most categories except fertilizer and precious metals. Prices are expected to fall 5% in 2025 and 2% in 2026, reaching their lowest since 2020.
“As the world around us changes, we are committed to transforming even faster to deliver for our customers and fulfill our purpose of nourishing the world,” Cargill said, adding that in order to “strengthen Cargill’s impact, we must realign our talent and resources to align with our strategy.”
As a private company, Cargill doesn’t release quarterly earnings but disclosed in an August memo that less than one-third of its businesses met earnings goals last year. In response, it announced structural changes, reducing operations from five units to three.
🚨Cargill Inc. is cutting thousands of jobs globally after the largest privately held company in the US missed profit targets.
The Minneapolis-based firm, the world’s largest agricultural commodities trader, will cut about 5% of its 164,000-strong workforce as part of its 2030… pic.twitter.com/Hkh8WNK6li
— GrainStats 🌾 (@GrainStats) December 2, 2024
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