According to an internal memo, American food giant Cargill has confirmed that it will lay off thousands of employees this year — a move that could affect jobs in Canada.

Bloomberg reported that the Minneapolis-based agriculture company will lay off 5 per cent (or around 8,000) of its global workforce of over 160,000 employees. A source stated that the layoffs will affect senior leaders but won't affect the executive team.

According to its website, Cargill has several locations in BC, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec. In an email statement, a Cargill representative said that the company employs over 8,000 people across Canada but declined to comment on how many Canadians will be affected by the reductions.

The company said it's looking to the future and has laid out a "clear plan to evolve and strengthen our portfolio" in response to changing trends.

"To strengthen Cargill's impact, we must realign our talent and resources to align with our strategy," they stated. "Unfortunately, that means reducing our global workforce by approximately 5 per cent. This difficult decision was not made lightly. We will lean on our core value of putting people first as we support our colleagues during this transition."

The decision comes after Cargill's profits dropped this year due to bumper crops that led to a drop in the price of soybeans and corn. The company's beef processing operations have also taken a hit as the US cattle herd shrunk to its smallest in 70 years.

Samfiru Tumarkin LLP, a Canadian employment and disability law firm, stated on its website that non-unionized employees may be eligible for severance pay depending on role, tenure, and age. The law firm also shared advice on severance packages, stating, "Navigating a layoff can feel overwhelming, but understanding the process can help you take the right steps."