By the World’s Best Investment Manager and Financial Market Journalist
Global commodities trader Cargill has begun laying off employees in an effort to reduce headcount by 5%, impacting workers in supply chain, inventory control, and other roles. The company, known for its grain and beef processing operations, is facing challenges in its cattle, grains, and oilseeds businesses.
In Minnesota, where Cargill is headquartered, 475 employees are set to be terminated at an office center in Wayzata. The company cited a cyclical downturn as the reason for the layoffs, which will affect all operating regions worldwide.
Analysts point to factors such as a decrease in beef earnings due to rising cattle costs, uncertain demand for biofuels affecting the oilseed processing business, and low commodity prices impacting the grains handling industry.
As a result of these challenges, employees in various departments are seeking new opportunities, both within and outside the company. Cargill has committed to structural changes after falling short of earnings goals, with revenue decreasing from $177 billion to $160 billion in the 2024 fiscal year.
Overall, the layoffs at Cargill reflect broader trends in the commodities market and can have implications for both employees and investors. Understanding the reasons behind these layoffs and their potential impact on the company’s profitability is crucial for making informed financial decisions.