Cargill, the world’s largest private company, has announced plans to reduce its global workforce by 5%, cutting approximately 8,000 jobs. The move follows a rare profit decline as the agribusiness giant faces challenges from falling crop prices and pressures in its beef operations.
The company, which reported $160 billion in annual revenue for 2024—a 10% drop from the previous year—said the layoffs are part of efforts to streamline operations and position itself for evolving agricultural trends. In August, Cargill revealed that less than one-third of its businesses met earnings goals, prompting a review of its operations.
“We are realigning our talent and resources to strengthen our portfolio and enhance competitiveness,” a company spokesperson said.
Cargill’s struggles mirror broader difficulties in the agricultural sector. Declining global crop prices have weighed heavily on commodity traders, including competitors like Archer-Daniels-Midland. Meanwhile, the U.S. cattle shortage has impacted margins across Cargill’s meat processing operations.
The company has made several cost-cutting moves this year, including the closure of a Nashville beef plant, the sale of a California beef processing facility, and offloading a dry sausage plant to Smithfield Foods. Agribusiness CHS also purchased eight grain facilities.
Cargill CEO Brian Sikes described 2024 as an “extremely challenging” year, with the company experiencing its lowest profit levels in nearly a decade. This marks a sharp reversal from two consecutive years of record earnings.
Cargill says it remains focused on leveraging new opportunities and delivering for its customers despite current challenges. “Our strategy is designed to maximize competitiveness and ensure we continue to make a meaningful impact in the industry,” the company stated.