Workers at two Cargill plants in southern Alberta appear to be safe from layoffs as the company announced it is reducing its global workforce.
Cargill plans to cuts its 164,000-person workforce by five per cent, according to an internal memo seen by Bloomberg.
In a statement, UFCW Local 401 president Thomas Hesse said information from Cargill indicates that layoffs aren’t expected at the company's Alberta operations at this time.
The union represents almost 2,500 workers at Cargill plants in High River and Calgary.
The job cuts are reportedly in response to lower prices for some crops and lower margins on beef products that are impacting revenue at the global food company.
Cargill reported revenue of $160 billion for 2024, down from $177 billion in 2023.
Hesse said the union is monitoring the situation, and he questioned the need for layoffs.
“We don’t believe any reductions are necessary,” he said. “Not a shred of evidence has been provided to justify any workforce reductions.”
About 2,000 people work at Cargill's meat packing plant near High River. About 35 per cent of the beef produced in Canada is processed there.
The job cuts at Cargill were first reported by BNN Bloomberg on Dec. 2.
