The big traders don't lay-off workers at the top of the markets they specialize in so this action probably means it is time to start watching for signs of a bottom in agricultural commodities.
From Bloomberg, December 2:
Cargill to Cut Thousands of Jobs Globally as Profits Shrink
- Largest private US firm will slash about 5% of workforce
- Most cuts will be made this year, CEO says in internal memo
Cargill Inc. is cutting thousands of jobs globally after the largest privately held company in the US missed profit targets.
The Minneapolis-based firm, the world’s largest agricultural commodities trader, will cut about 5% of its 164,000-strong workforce as part of its 2030 strategy, according to an internal memo seen by Bloomberg. The reductions won’t affect its executive team, but will impact a number of next level senior leaders, according to people familiar with the matter, who asked not to be identified discussing internal matters.
Cargill and crop-trading rivals such as Bunge Global SA and Archer-Daniels-Midland Co. have seen earnings shrink after bumper crops sent corn and soybean prices tumbling. For Cargill, the squeeze has been compounded by the smallest US cattle herd in seven decades. The company has spent much of the past decade turning itself into the third-largest US beef processor.
“The majority of these reductions will take place this year,” Chief Executive Officer Brian Sikes said in the memo. “They’ll focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work.”
Read more: Cargill Supply Chain Head and Treasurer to Retire Amid Shakeup
Cargill had already told employees earlier this year that it would reduce the number of business units to three from five after less than one-third of its businesses reached their earnings goals in fiscal 2024. It also cut about 200 tech jobs in various locations.
The company’s profits fell to $2.48 billion in the year through the end of May, the lowest since 2015-16, Bloomberg Opinion’s Javier Blas reported. That’s less than half the record net profit of about $6.7 billion it made in the 2021-22 fiscal year....
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