Cargill lays off 8,000 workers as profits plummet

In the United States, Cargill, the largest privately held company and leading agricultural commodities trader, announced it would eliminate approximately 8,000 jobs as part of a major restructuring effort. The decision was prompted by significant declines in food prices and profits, marking a stark contrast to the surging profits the company experienced during the pandemic and subsequent inflationary period. In 2024, the company reported profits of $2.48 billion, a dramatic decline from the previous year's $6.7 billion, representing the lowest profits since 2016. The layoffs will affect about 5% of its global workforce, which totals over 160,000 employees worldwide. Cargill clarified that these layoffs are part of a long-term strategy initiated earlier in the year aimed at evolving and strengthening its portfolio to better meet market demands and maintain competitiveness. Nissan, another major player but in the automotive industry, is undergoing a drastic restructuring of its operations due to an alarming 90% decline in profits compared to the previous year. This significant downturn has resulted in the company announcing plans to cut 9,000 jobs globally and 20% of its manufacturing capacity as it struggles to maintain financial viability in a quickly evolving market. With fierce competition from low-cost electric vehicle manufacturers, particularly from China, Nissan is facing challenges in sustaining its market position and profitability. The company attributed its struggles to aging vehicle models and difficulty in transitioning to popular hybrid vehicle technologies, resulting in a worrying sales slump in key markets such as China and the United States. Despite the financial setbacks, Cargill has announced intentions to open a new hub in Atlanta to create 400 technician and engineering jobs, demonstrating a commitment to adapt its business model to changing global market conditions. CEO Brian Sikes mentioned that a clearer vision for the company’s restructuring would be communicated in December 2024. Meanwhile, concerns loom for Nissan workers as they anticipate the job cuts amidst a highly competitive vehicle market, where the introduction of new vehicle models is conducted in attempts to regain lost market share. Overall, both companies are navigating challenging environments marked by falling prices and profits, prompting efforts to streamline operations and reposition themselves within their industries. Cargill's focus on cost-cutting measures and adjustments in workforce align with a broader trend of market instability impacting various sectors across the globe.