Cargill, Tyson Announce Significant Midwest Layoffs

Reuters’ Tom Polansek reported Tuesday that “global trading house Cargill plans to permanently terminate about 475 employees in Minnesota, home to its corporate headquarters, starting on Feb. 5, according to a company letter released by the state on Tuesday. Cargill has said it plans to cut around 5% of its staff after revenue slumped in its most recent fiscal year as crop prices hit multi-year lows.”

“The company is informing Minnesota employees about layoffs this week, and they are eligible for severance pay and outplacement services, Cargill said in a letter to the Minnesota Department of Employment and Economic Development,” Polansek reported. “The employees work at an office center in Wayzata or are ‘tagged’ to the facility but live elsewhere, according to the letter, which added that they are not represented by a union. ‘Cargill is undergoing a business restructuring that is resulting in a reduction in force of certain roles at the Wayzata Office Center,’ the letter said.”

The Associated Press reported that “a 2024 annual report from the company noted that it had more than 160,000 employees worldwide, meaning the latest job cuts would be set to impact around 8,000 workers. As a privately-held company, Cargill doesn’t regularly publish its finances publicly. A 2024 report from the company, however, notes that it operates in 70 countries and sells to 125 markets — raking in some $160 billion in annual revenue. That’s down from $177 billion in revenues seen the year prior.”

“According to an internal memo seen by Bloomberg, which first reported on Cargill’s layoffs Monday, Chief Executive Officer Brian Sikes told employees that the majority of these reductions will take place this year,” the AP reported. “Citing unnamed sources familiar with the matter, the outlet also reported that the job cuts won’t impact Cargill’s executive team, but a number of other senior leaders will be included.”

“This week’s layoff announcement arrives while much of the agricultural industry continues to face dropping prices for the commodities they trade, with the costs of anything from wheat to vegetable oil coming down from record surges seen during the COVID-19 pandemic and global conflicts such as Russia’s war in Ukraine,” the AP reported. “While sticker prices for consumers are still higher than they were just several years ago, that shift has added pressures on food giants like Cargill.”

Tyson Foods Closing Kansas Meat Plant

Progressive Farmer’s Todd Neeley reported Tuesday that “more than 800 employees will lose their jobs in Emporia, Kansas, as Tyson Foods has announced the planned closure of its value-added marinated proteins and ground beef plant. ”

“Tyson announced the anticipated closure in a Worker Adjustment and Retraining Notification Act notice to the state of Kansas. The act requires employers to inform workers in advance of a plant closing or mass layoff,” Neeley reported. “In a letter to employees, Sanchez said the last day of operations at the plant would be on or about Feb. 14, 2025.”

“‘After careful consideration, we have made the difficult decision to close our beef and pork non-harvest processing facility in Emporia, Kansas, to increase the efficiency of our operations,’ a spokesperson for Tyson Foods told DTN in a statement,” Neeley reported. “‘We understand the impact of this decision on our team members and the local community. Taking care of our team members is our top priority and we encourage them to apply for other open roles within the company. We are also working closely with state and local officials to provide additional resources to those who are impacted. The state of Kansas is important to Tyson Foods, with employment of more than 5,000 team members across our other Kansas facilities.'”