Cargill’s plans to cut thousands of jobs across its global workforce are not expected to impact front-line and union positions in Canada, according to the union that represents the bulk of Canadian workers at the food giant.
Minnesota-based Cargill confirmed to Global News on Monday that it plans to lay off about five percent of its global workforce in the coming months, amounting to about 8,000 jobs at the agricultural giant.
Cargill, by its own estimates, employs nearly 8,000 Canadian workers in 70 cities, including major operations in Guelph, Ont., and Alberta.
Derek Johnston, spokesman for the United Food and Commercial Workers Union, told Global News on Wednesday that there is limited information so far about the impact of the restructuring.
But he said the union has not received any notice of layoffs coming to front-line production workers in Canada.
The UFCW represents approximately 6,000 Cargill employees in Canada, Johnston said in an interview. He added that he expects the bulk of the cuts to come from administrative positions and not from anything that affects production.
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Cargill operates as a commodity trader and processor of a wide range of agricultural products around the world.
Thomas Hess, president of UFCW Local 401, which represents approximately 2,500 Cargill workers at two plants in Calgary and High River, Alta., said in a statement Tuesday that workers in Alberta do not appear to be affected at this point.
“Based on initial representations from company officials, it appears that the workforce reduction plan will not impact Cargill’s operations in Alberta at this time. However, we will continue to monitor this situation carefully.”
Hess added that layoffs would not be justified at the two Alberta meat processing plants, given the high prices of beef in recent years.
“We will continue to fight for and represent the best interests of Cargill workers with all the tools and resources at our disposal to ensure that major companies like Cargill treat their workers fairly,” he said.
Most of the job cuts at Cargill will take place this year, Brian Sykes, the company’s president and CEO, said in a memo seen by Reuters on Tuesday.
“They will focus on simplifying our organizational structure by eliminating 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 the 2024 fiscal year that ended in May, down from a record $177 billion the previous year.
Cargill does not publish quarterly earnings data, but in a memo seen by Reuters in August, it said less than a third of its business met its profit targets in the last fiscal year.
“Impacts to our operations and front-line teams will be kept to a minimum as we enable them to continue providing services to our customers,” Sykes said in the memo.
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