Cargill to lay off about 8,000 workers due to declining revenue

American food company Cargill has begun laying off employees in all countries where it operates.

The company has faced a decline in profitability in the cattle, grain and oilseed segments, Reuters writes.

Cargill plans to reduce its workforce by 5%, or 8,000 employees, due to a decrease in revenue. Most of the layoffs will take place this year.

At the same time, the company does not publish quarterly reports. According to Reuters, revenue for the 2024 fiscal year fell by 10.6%, to $160 million. Cargill employs more than 160,000 people worldwide, and a company representative said that the cuts will affect all regions of its presence.

According to analysts, Cargill’s oilseed processing business is also under pressure from unstable demand for biofuels and declining processing margins.

“A large supply of soybeans and corn has led to the fact that prices for these crops have reached a four-year low, which has hit the grain processing businesses of Cargill, ADM and other competitors such as Bunge,” analysts note.

Reference.

Cargill is present in 70 countries around the world and sells agricultural products to the markets of 125 countries. In the 2022-2023 season, Cargill became one of the largest grain exporters in Ukraine with an export share of 5%.

In Ukraine, the corporation owns 51% of the Neptune grain terminal in the port of Pivdennyi. As a result of the full-scale invasion, Cargill lost control over two Ukrainian enterprises specializing in sunflower processing.