Cargill is gearing to trim its 1.65 lakh strong global workforce by five per cent. The crop-trading company has been experiencing a dip in profits for some time now.
Thousands of jobs will be cut, but reports say that the executive team will not be affected although senior leaders in the next level will be.
The job cuts, most of which will take place this year, will help the company streamline its organisational structure. While layers will be eliminated, the scope of work of managers will be expanded with them having to shoulder more responsibilities. Duplication of work will also be done away with.
Profits have been shrinking because prices of corn and soyabean dropped drastically following record production. The company posted only about $2.48 billion in profits this year through the end of May, which was the lowest since 2015-16, as reported by Bloomberg Opinion. Considering that the company had posted profits of over six billion dollars in 2021-22, there has clearly been a considerable drop.
Cargill had also channelised efforts and investment towards the beef processing business over the last decade. However, that business has not been doing well either.
It is reported that Brian Sikes, CEO, Cargill, is determined to focus on streamlining operations, increasing speed, improving efficiency and managing costs effectively. Sikes, who took charge a year ago, wishes to make Cargill a food and agricultural company that is easy to work for and be associated with.
