Reuters' Amy Lv and Naveen Thukral reported that Cargill has told its workers about big changes coming to the company in a leaked internal memo. These changes aim to boost how much they can make and make their work smoother. The company wants to get ready for what's next in the market.
Cargill plans to cut down its business units from five to three main groups: food, farming and trade, and a special group. This shakeup brings new bosses too. Jon Nash will run the food part, Roger Watchorn will handle farming and trade, and David Webster will be in charge of the special group.
This revamp in strategy comes after Cargill has faced trouble hitting its profit goals. The company has run into problems because of too many crop supplies, which has cut into its profits. Also, the U.S. has seen its cattle numbers drop to the lowest in years making things even tougher for the company's bottom line. To deal with these issues, Cargill has started to cut jobs. They've already let go of 200 people in tech roles and plan to lay off 178 more workers at their Fresno plant.
Cargill expects these changes to have a big impact on how well they operate. It estimates the restructuring will cut down energy use by about 5-15%. Also, it plans to lower water use and waste by 5-25%, while saving 2-5% on raw materials. The company believes these steps will boost productivity within two years. This forward-thinking move shows Cargill wants to adapt fast to market changes and keep its operations cost-effective.
The restructuring is likely to have a big impact on the farming industry. It points to a change in how the industry might work in the future and could have an influence on how people see Cargill as a trustworthy supplier in the global market. As the company deals with these changes, it's key for it to keep its good name and stay reliable for customers and partners.
