The Imminent 5% Global Workforce Cut: Cargill’s Business Ventures and Strategies in Vietnam

On December 2, according to CNN and Bloomberg, Cargill announced that it would be cutting about 5% of its global workforce as part of a “long-term strategy” established earlier this year. With a current global workforce of approximately 160,000 employees, this could mean a reduction of around 8,000 jobs.

Cargill is currently the largest private company in the US by revenue and the world’s largest agricultural commodity trader. They are also a major corporation in the field of raw materials, distributing grains, meat, and other agricultural products globally.

The company benefited greatly from the pandemic and the subsequent period, as inflation and geopolitical turmoil drove up food prices. However, prices have recently declined, falling about 9% last year, according to the World Bank. Oxford Economics predicted in April that food prices would hit rock bottom this year.

In addition, Cargill has been impacted by the decline in the US cattle population. They are investing to become one of the largest beef processors in North America.

Earlier this year, Bloomberg reported that Cargill’s profit fell to $2.48 billion in the fiscal year ending in May. This is less than half the record $6.7 billion set in 2021-2022 and the lowest since 2016.

“Looking to the future, we have a clear plan for growth and strengthening our businesses, thereby capitalizing on trends and maximizing our competitiveness,” the company said in a statement to CNN.

In June, Cargill announced the opening of a transit center in Atlanta and the recruitment of 400 engineers and technicians to work there.

How does Cargill operate in Vietnam?

In Vietnam, Cargill is an international company in the animal feed production industry that entered the market very early on, around 1995, along with other giants such as CP (1993), Proconco (1991), and Japfa (1999)…

Regarding Cargill’s business performance in Vietnam, data from Vietdata shows that the company’s revenue has been continuously increasing in the 2020-2022 period.

Specifically, in 2020, Cargill Vietnam’s revenue reached more than VND 17,000 billion. In 2021, the company’s revenue increased by 56% compared to 2020 and increased by another 7% in 2022, reaching nearly VND 28,500 billion.

Although revenue has grown continuously in the 2020-2022 period, according to Vietdata, Cargill Vietnam’s after-tax profit has fluctuated.

Specifically, in 2020, Cargill Vietnam reported a net profit of nearly VND 940 billion. In 2021, after-tax profit increased to nearly VND 1,100 billion, an increase of 15%. Then, in 2022, Cargill Vietnam’s after-tax profit decreased by 18% to nearly VND 890 billion.

Regarding its activities in Vietnam, Cargill is recognized for its active participation in various programs.

In August 2024, Cargill added two prestigious awards to its list of achievements in Vietnam: the TOP50 Corporate Sustainability Award (CSA) 2024 in the “Outstanding CSR Activities” category for the third consecutive year and the “Best Workplace in Asia” award from HR Asia for the fourth consecutive year.

Sharing with the press about the CSA 2024 award, Mr. Nguyen Ba Luan, Country President of Cargill in Vietnam, said that receiving the TOP50 CSA award for the third consecutive year is a testament to Cargill’s commitment to Vietnam, especially to the country’s farmers.

“By empowering farmers, improving their livelihoods, and supporting education for children, Cargill is not only making a positive impact on people’s lives today but also building a brighter future for generations to come,” said Mr. Luan. “The company focuses on promoting sustainable farming methods and processes, while also supporting the development of more prosperous and resilient communities.”