America’s Biggest Private Company Announces Bad News Ahead of Christmas

Cargill, the largest privately-held company in the U.S., is laying off 8,000 employees amid falling grocery prices and crop values. The company has struggled to meet financial targets in 2024, with less than a third of its business units achieving earnings goals. CEO Brian Sikes stated in an internal memo that the layoffs will “streamline organizational structure.”

Cargill began in 1865 when W.W. Cargill opened a grain flat house in Conover, Iowa. The company primarily expanded alongside railroad growth. By the 1900s, Cargill had consolidated operations under the Cargill Elevator Company, focusing on grain trading.

Despite the Great Depression, the company had steadily grown a global presence. In the mid-20th century, Cargill diversified into animal feed, salt production, and soybean processing.

Cargill is currently a global leader in agriculture and food production, operating in over 70 countries. Nonetheless, recent struggles have damaged the company’s growth.

Sikes stated, “Our recent performance and the market trends unfolding in front of us have proven a clear and pressing case for change.”

Sikes added, “The majority of these reductions will take place this year. They’ll focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work.”

Cargill cut 200 tech jobs earlier this year but also hired for 400 new positions in Atlanta in June. The layoffs come as wheat, corn, and soybean values hit new lows. Sikes’ memo also stated, “At our core, we will always been a food and ag company.”

The memo added, “As such, these two enterprises are highly interconnected and will be supported by an independent operating system that builds our deep expertise, connections across the supply chain, and unique position at the heart of the global food system.”

A Cargill spokesperson stated, “The company has laid out a clear plan to evolve and strengthen its portfolio.”

Cargill stated, “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, maximize our competitiveness, and, above all, continue to deliver for our customers.”