Cargill will shed 2,000 jobs because of the "weak" global economy

Cargill will shed 2,000 jobs because of the "weak" global economy

US agribusiness giant Cargill is to cut around 2,000 jobs around the world, citing the "continued weak global economy".

On Friday (2 December) the company, which produces and markets food and agricultural products and services, announced it will make 1.5% of its 138,000 employees in 63 countries redundant, with most of the losses taking place over the next six months.

Cargill said its expenses must be reduced and work processes simplified in light of the economic climate.

"As economic conditions change, so must we," Cargill corporate vice president Mike Fernandez said. "Regrettably, this impacts talented people who have made important contributions to our company. These are difficult decisions but are necessary to better position the company for continued growth."

Affected employees will get severance pay and support in keeping with its own policies and local laws and regulations, the company added.

In October, Cargill reported a 66% drop in earnings from continuing operations in its first quarter, blaming global economic uncertainty, "turbulence" in commodity markets and flooding in the US.