Cargill, the largest private company in the U.S., is trimming its global workforce as it faces pressure related to lower commodity prices.
The Minnesota-based company, which is also one of the world’s largest globally active agricultural commodity traders, told FOX Business that approximately 5% of its workforce are being laid off. That equates to about 8,000 jobs.
Cargill said the layoffs are part of a “long-term strategy” that the 160-year-old company laid out earlier this year.
“As we look to the future, we have laid out a clear plan to evolve and strengthen our portfolio to take advantage of compelling trends in front of us, maximize our competitiveness, and, above all, continue to deliver for our customers,” the company said in a statement.
It comes at a time when prices for commodity crops like wheat and soybeans have softened, threatening profit margins for the industry.
According to the World Bank, commodity prices fell 4% in the third quarter of 2024 compared with the prior quarter. There were declines across most categories, except for fertilizer and precious metals. The World Bank projected that commodity prices are expected to decline by 5% in 2025 and 2% in 2026.
