Cargill, the largest privately held U.S. company, is laying off about 5% of its global workforce, roughly 8,000 employees, as food commodity prices decline.

The layoffs are part of a long-term strategy set earlier this year.

Cargill, which profited during the pandemic from rising food prices, is now facing a drop in grocery prices and a decline in U.S. cattle numbers.

The company’s profits fell sharply to $2.48 billion in the fiscal year ending in May, less than half of the previous year’s $6.7 billion, CNN has reported.

Despite the cuts, Cargill is continuing to expand, including a new hub in Atlanta.

Written by B.C. Begley