Cargill to Cut 8,000 Jobs Globally Amid Profit Decline
Cargill Inc., a leading global agricultural commodities trader, has announced plans to reduce its global workforce by approximately 5%, equating to about 8,000 positions. This decision follows a decline in profits, with net earnings falling to $2.48 billion in the fiscal year ending May 2024, the lowest since 2015-16.
The layoffs are part of Cargill's 2030 strategy, aiming to streamline operations by removing organizational layers, expanding managerial responsibilities, and reducing work duplication. CEO Brian Sikes emphasized the need to "simplify and streamline our operations, improve the speed and efficiency of our work, more competitively manage our costs and capital."
In Canada, where Cargill employs over 8,000 individuals, the impact of these layoffs remains uncertain. The company has stated that effects on frontline operations will be minimized to maintain customer service.
This move reflects a broader trend of workforce reductions across various sectors in Canada. Companies such as Questrade, Salesforce, Kinaxis, AMD, and Avaya have also announced layoffs in response to economic challenges and shifting market conditions.
Despite these challenges, Canada's labour market has shown resilience, with employment rates returning to pre-pandemic levels and significant job gains in sectors like wholesale, retail trade, health care, and social assistance.
However, the agricultural sector faces specific pressures, including declining commodity prices and reduced processing margins, prompting companies like Cargill to reassess and realign their operations to maintain competitiveness.
Have you been laid off by Cargill or another commodities trader? Contact our employment lawyers today. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.
The original article, “Cargill plans to slash roughly 8,000 jobs globally” was published in CBC News on December 3, 2024. Read the Full CBC News story.
