Cargill to Lay Off 475 Employees in Minnesota Amid Restructuring
Source: DairyNews.today
Global agribusiness giant Cargill will permanently terminate about 475 employees in Minnesota, its corporate headquarters state, as part of a broader restructuring plan. The layoffs are set to begin on February 5, according to a letter from the company released by the Minnesota Department of Employment and Economic Development.
The job cuts are part of Cargill’s previously announced decision to reduce 5% of its global workforce—or approximately 8,000 positions—following a sharp revenue decline in the fiscal year ending May 2024.
Impact on Minnesota Workforce
The affected employees work at or are affiliated with the company’s Wayzata Office Center. They are not unionized, Cargill said in the letter. Those impacted will be eligible for severance pay and outplacement support, the company noted.
“Cargill is undergoing a business restructuring that is resulting in a reduction in force of certain roles at the Wayzata Office Center,” the company said.
Challenges in Agricultural Markets
Cargill, one of the world’s largest agricultural merchants, faces headwinds from falling prices of staple commodities such as wheat, corn, and soybeans, which have dropped to near four-year lows. Shrinking crop processing margins have further pressured earnings in a challenging market environment.
Revenue Decline
Cargill reported revenue of $160 billion for fiscal 2024, down from a record $177 billion in the prior year. The company does not disclose quarterly earnings, but an internal memo from August indicated that less than one-third of its business units achieved their earnings targets in the last fiscal year.
Broader Workforce Reductions
Cargill employs over 160,000 people worldwide. Its ongoing restructuring is part of a long-term plan to streamline operations and consolidate five business units into three by 2030.
While the Minnesota layoffs are among the first specific cuts disclosed, the broader restructuring will continue to impact employees globally.
Cargill emphasized its commitment to minimizing disruptions for operational and frontline teams, focusing on maintaining service to customers despite the workforce reductions.
The company’s challenges reflect wider struggles in the agricultural sector, as competitors like Archer-Daniels-Midland grapple with weaker earnings, and Bunge Ltd. works through regulatory hurdles in its planned acquisition of Viterra.
Impact on Minnesota Workforce
The affected employees work at or are affiliated with the company’s Wayzata Office Center. They are not unionized, Cargill said in the letter. Those impacted will be eligible for severance pay and outplacement support, the company noted.
“Cargill is undergoing a business restructuring that is resulting in a reduction in force of certain roles at the Wayzata Office Center,” the company said.
Challenges in Agricultural Markets
Cargill, one of the world’s largest agricultural merchants, faces headwinds from falling prices of staple commodities such as wheat, corn, and soybeans, which have dropped to near four-year lows. Shrinking crop processing margins have further pressured earnings in a challenging market environment.
Revenue Decline
Cargill reported revenue of $160 billion for fiscal 2024, down from a record $177 billion in the prior year. The company does not disclose quarterly earnings, but an internal memo from August indicated that less than one-third of its business units achieved their earnings targets in the last fiscal year.
Broader Workforce Reductions
Cargill employs over 160,000 people worldwide. Its ongoing restructuring is part of a long-term plan to streamline operations and consolidate five business units into three by 2030.
While the Minnesota layoffs are among the first specific cuts disclosed, the broader restructuring will continue to impact employees globally.
Cargill emphasized its commitment to minimizing disruptions for operational and frontline teams, focusing on maintaining service to customers despite the workforce reductions.
The company’s challenges reflect wider struggles in the agricultural sector, as competitors like Archer-Daniels-Midland grapple with weaker earnings, and Bunge Ltd. works through regulatory hurdles in its planned acquisition of Viterra.
