Cargill Reshapes Its Future with Job Cuts and Restructuring

In a significant move, Cargill, the globe's top agricultural commodities trader, has announced a 5% cut in its workforce. This decision comes after the company faced falling revenues due to declining crop prices. The Minnesota-based company has been working to enhance its competitiveness and adapt to market changes under CEO Brian Sikes, who took over earlier this year. Cargill is streamlining its operations into three main divisions: food enterprise, agriculture and trading, and specialised portfolio. These changes aim to maximise efficiency and profit margins. Despite the tough choices, the company remains committed to its customers. Cargill, along with Archer Daniels Midland, Bunge, and Louis Dreyfus, makes up the influential ABCD quartet in the agricultural commodity market. They benefited from high crop prices during recent events like the Covid-19 pandemic and the Russian invasion of Ukraine. However, with crop supplies now abundant, prices have dropped, hurting profits across the industry. Recent droughts in the US have further strained Cargill's beef sector, making conditions challenging for their meat-packing operations. The family-owned company, established in 1865 by William Wallace Cargill, is currently owned by the Cargill and MacMillan families. Their profits have also taken a hit, dropping to the lowest point since 2015-16.