Cargill reduces workforce by 5 percent: Strategic shift after revenue slump

The family-owned company Cargill, a giant in the global agricultural trade, has announced plans to cut about 5 percent of its worldwide workforce, affecting around 8,000 jobs. This move comes against the backdrop of declining revenue in the most recent fiscal year, which ended in May. Cargill experienced a decrease in revenue from $177 billion to $160 billion as prices for key agricultural commodities like wheat, corn, and soybeans fell to a four-year low, and margins in processing shrank. As part of a strategic shift that includes streamlining the organizational structure, the company aims to reduce hierarchy levels, expand areas of responsibility, and eliminate duplication of work. Brian Sikes, the president and CEO of Cargill, emphasized in a company memo that the restructuring is specifically aimed at freeing up the operational teams so they can continue to work in a customer-focused manner. The Minnesota-based company, which has a history of almost 160 years, stressed that significant changes are already in planning. A central measure within the strategy for 2030 is the consolidation of operational activities from five to three business segments. These measures result from the fact that less than a third of the company divisions met their profit targets in the past fiscal year. The decision to downsize the workforce was first made public through a report by Bloomberg News. According to Reuters, which was able to view a memo from Sikes, the majority of the job cuts will occur later this year.