Cargill, the world’s largest agricultural commodities trader, is cutting approximately 5% of its global workforce, or around 8,000 employees, as part of “a long-term strategy” announced earlier this year. The Minnesota-based giant attributed the decision to shifting market dynamics, including declining food commodity prices, according to a statement to CNN.

During the pandemic, Cargill thrived, benefiting from inflation and geopolitical instability that drove up food prices. However, with grocery prices stabilizing, the company faces new challenges. Additionally, the U.S. Department of Agriculture reports a decline in cattle numbers, impacting Cargill’s position as one of North America’s largest beef processors.

The company’s profits have sharply declined, with Bloomberg reporting earnings of $2.48 billion in the fiscal year ending May 2024—less than half the $6.7 billion it made during the 2021-2022 period and the lowest since 2016.

Cargill employs over 160,000 people globally and, despite these layoffs, continues to invest in growth. In June, it opened an Atlanta tech hub, creating 400 new roles in technology and engineering.

“As we look to the future, we have laid out a clear plan to evolve and strengthen our portfolio… and, above all, continue to deliver for our customers,” the company emphasized.

This restructuring highlights Cargill’s efforts to adapt to changing market trends while maintaining its competitive edge.