Cargill cuts 8,000 jobs in response to falling crop prices

Cargill, a global leader in agribusiness, has announced plans to cut approximately 8,000 jobs, accounting for 5% of its workforce. The decision follows a challenging fiscal year during which the company’s revenues fell significantly, attributed to multi-year lows in crop prices and a tough operating environment.

With a workforce of 160,000 spread across 70 countries, the job reductions reflect the company’s efforts to realign resources and strengthen its position amid financial pressures. In a statement on Tuesday, Cargill described the move as part of a broader strategy to increase its operational efficiency and long-term impact.

The company, which operates in 125 global markets, reported $160 billion in revenue for the most recent fiscal year—a sharp decline from the $177 billion it recorded previously. This downturn has underscored the need for significant restructuring to address the shifting dynamics in global agriculture and food production.

As a privately held entity, Cargill is not obligated to disclose financial details regularly. However, its annual report highlights the economic pressures the company has faced, including volatile commodity prices and changing market demands.

According to internal communication, the majority of the layoffs will occur this year, with some senior leadership roles also impacted. However, the executive team will remain unaffected by the cuts. While details regarding the specific locations or departments affected have not been disclosed, recent developments offer insight into Cargill’s broader operational adjustments:

• Closure of the Altoona, Iowa, plant and reduction of 100 jobs at the Nashville, Tennessee, facility.
• Sale of its sausage-packing plant in Nashville to Smithfield Foods.
• Continued investment in innovation, such as a new cocoa product line and a stake in ENOUGH, a company focused on fermented protein.

These measures signal a dual strategy of cost management and investment in emerging areas of food production.

Cargill’s announcement aligns with broader trends in the food production sector, where companies are navigating economic uncertainties, rising operational costs, and evolving consumer preferences. The agricultural industry, in particular, has been heavily impacted by supply chain disruptions, fluctuating prices, and sustainability pressures.

Notably, Cargill is not alone in making workforce adjustments. Tyson Foods, another major player in the sector, recently revealed plans to lay off over 800 employees at its Kansas facility, underscoring the widespread challenges facing the industry.