Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Cargill's plans to cut thousands of jobs in its global workforce are not expected to affect front-line union positions in Canada, according to the union representing the majority of the food giant's Canadian workers.
Based in Minnesota Kargil confirmed to Global News on Monday that it plans to cut about five percent of its global workforce in the coming months, amounting to roughly 8,000 jobs at the agriculture giant.
Cargill, by its own estimates, employs approximately 8,000 Canadian workers in 70 cities, including large operations in Guelph, Ontario, and Alberta.
Derek Johnstone, a spokesman for the United Food and Commercial Workers, told Global News on Wednesday that there is limited information so far on the impact of the restructuring.
But he said the union has not received notice of impending layoffs for front-line manufacturing workers in Canada.
The UFCW represents nearly 6,000 Cargill employees in Canada, Johnstone said in an interview. He added that he expects most of the layoffs to come from management positions, not anything that affects production.
Get weekly money news
Get expert insights, questions and answers on markets, housing, inflation and personal finance information delivered every Saturday.
Cargill operates as a commodity trader and processor of a range of agricultural products worldwide.
Thomas Hesse, president of the UFCW Local 401 union, which represents Cargill's nearly 2,500 workers at two plants in Calgary and High River, Alta., said in a statement Tuesday that Alberta workers do not appear to be affected at this stage.
“Based on initial statements from Company officials, it appears that the workforce reduction plan will not affect Cargill's operations in Alberta at this time.” However, we will continue to monitor this situation closely,” he said.
Hesse added that layoffs would not be justified at the two Alberta meat processing plants given the spike in beef prices in recent years.
“We will continue to fight for and represent the best interests of Cargill workers with every tool and resource at our disposal to ensure that large corporations like Cargill treat their workers fairly,” he said.
Most of the job cuts at Cargill will take place this year, the company's president and CEO Brian Sykes said in a memo reviewed by Reuters on Tuesday.
“They will focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers and reducing duplication of work,” Sykes said in the memo.
Unlisted Cargill reported revenue of $160 billion for its 2024 fiscal year, which ended in May, down from a record $177 billion a year earlier.
Cargill does not release quarterly earnings reports, but a memo seen by Reuters in August said less than a third of its businesses met their profit targets in the last fiscal year.
“The impact on our operations and frontline teams will be minimized as we enable them to continue to deliver for our customers,” Sykes said in the note.
© 2024 Global News, a division of Corus Entertainment Inc.
