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Cargill has confirmed significant layoffs affecting approximately 5% of its global workforce, translating to around 8,000 employees.

This decision is part of a strategic realignment aimed at enhancing the company’s impact in a rapidly evolving food and beverage landscape.

Cargill, headquartered in Wayzata, Minnesota, operates in 70 countries and serves 125 markets, generating annual revenues of approximately $160 billion, down from $177 billion the previous year.

The company’s latest layoffs come at a challenging time for the agricultural sector, which is grappling with declining commodity prices following the unprecedented surges during the Covid-19 pandemic and geopolitical tensions, such as the ongoing conflict in Ukraine.

Cargill noted that the workforce reductions are integral to a long-term strategy that seeks to maximise competitiveness and adapt to changing market dynamics. “As the world around us changes, we are committed to transforming even faster to deliver for our customers and fulfil our purpose of nourishing the world,” the company said in a statement.

CEO Brian Sikes addressed employees in an internal memo, indicating that most of the layoffs would occur within the current year. While the cuts will not impact the executive team, several senior leaders are expected to be affected.

Cargill's decision to reduce its workforce reflects broader trends in the food and beverage industry, where many companies are reevaluating their operations in response to fluctuating consumer prices and shifting demand patterns.

Despite the challenges, Cargill remains a dominant player in the industry, having been recognised by Forbes as the largest private company in the US for the fourth consecutive year.

In the statement, Cargill noted: “To strengthen Cargill’s impact, we must realign our talent and resources to align with our strategy. Unfortunately, that means reducing our global workforce by approximately 5%. This difficult decision was not made lightly.”