America’s biggest private company is laying off thousands of workers

Cargill, the megasized Minnesota-based food production giant, is laying off about 5% of its global workforce as food commodity prices drop.

Cargill is America’s largest privately held company, according to Forbes, and is also the world’s largest agricultural commodities trader. In a statement to CNN on Monday, the company said the changes are part of “a long-term strategy” set earlier this year.

Cargill is big into the ingredients business. In simpler terms, the company is the middleman distributing grains, meat and other farm products around the world. It had profited heavily during the pandemic and its aftermath, thanks to inflation and geopolitical turmoil throwing food prices into disarray. But now, grocery prices are dropping.

Bloomberg reported earlier this year that the famously tight-lipped behemoth’s profits had fallen to $2.48 billion in the fiscal year ending in May. This was less than half of the record $6.7 billion it made from 2021 to 2022, and also the lowest profit since 2016.

Cargill has more than 160,000 employees, according to its 2024 report, though it does not regularly release financial reports. That means there will be an estimated 8,000 cuts. Brian Sikes has been the company’s president and CEO since 2023.

In June, Cargill announced that it was opening an Atlanta hub and was hiring for 400 tech and engineer roles.

“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 its statement to CNN.