Cargill, the largest private employer in the country, has announced it will lay off 5% of its workforce.
Transcript:
Conway Gittens: It’s a busy week of updates on the labor market with the big monthly jobs report coming at the end of the week. Ahead of that, new data showed there were 7.74 million job openings on the last day of October, which was up from the prior month.
Sticking with the job market, approximately 8,000 pink slips are about to go out at Cargill. The privately-held company said it is laying off 5 percent of its global workforce. The job cuts are coming as one of America’s largest private companies is grappling with falling food prices.
Cargill, which is a big player in food production, saw profits of roughly $2.5 billion in the fiscal year that ended in May, according to a Bloomberg report. That’s way down from the record $6.7 billion profit it pocketed from 2021 to 2022 when the pandemic drove food inflation to its peak.
Cargill’s fortunes have also turned with a drop in cattle farming leading to a fall in its large beef production operations.
So with revenues drying up from the boom food inflation years of the pandemic, Cargill has decided to cut its expenses and that means layoffs.
In a statement to CNN, Cargill said, “As we look to the future, we have laid out a clear plan to evolve and strengthen our portfolio to take advantage of compelling trends in front of us.”
For Cargill that means a pivot towards technology. Earlier this year it announced plans to add 400 tech and engineer jobs.
Subscribe |
Earn. Live. Invest. |
TheStreet Pro |
#cargill #layoffs #engineering
source
