Restructuring at Cargill Inc. could mean job cuts and the closure of two offices, sources have told Reuters.
An industry source told Reuters that the company may eliminate as many as 4,000 jobs, or about 2.5 percent of its employees.
“I haven’t heard anything about layoffs or office closures,” a Cargill spokesman said in a report. “Like any organization, there are people coming and going all the time.”
Ken Morris, a former Cargill employee told Reuters that the last time the company’s last major restructuring was about 15 years ago. ‘Headcount reduction and Cargill just don’t go in the same sentence,’ he added.
Talk of the cuts comes as two of the company’s top leaders prepare to retire. Two Cargill veterans and vice chairmen, Paul Conway and Emery Koenig, will retire on Dec. 31 and Feb. 1, respectively. Conway, who oversees the food ingredients businesses, has been with Cargill for 36 years; Koenig, Cargill’s chief risk officer, has been with the company 38 years.
Recently, Cargill marked a significant milestone in Korea with the official opening of its Agri Purina’s feed mill plant in Pyeongtaek, reaffirming its investment in the country and signaling its continued commitment to sustainable growth of Korea’s feed and livestock industry.
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The 150-year-old company, a top commodities trader, is also closing offices, two of the industry sources said. The cutbacks at the Minnesota-based company come as global agricultural companies are under pressure from slumping commodity prices, slowing demand in China and weakness in emerging markets where Cargill has significant investments.
Two of Cargill’s top leaders are retiring
Two of Cargill Inc.’s top leaders, both with more than 30 years of experience at the agribusiness giant, are set to retire. Meanwhile, a Cargill spokesman said he knew of no planned layoffs or office closings at the company. Reuters on Friday reported that a restructuring would result in both, citing unnamed sources.