Agribusiness giant Cargill Inc. is slashing 5% of its global workforce, including 475 employees at its Wayzata headquarters.

In a Dec. 2 letter filed with the Minnesota Department of Employment and Economic Development, Cargill said the local layoffs are part of a “business restructuring.” The letter stated that the 475 employees either work directly at the Wayzata office or are “tagged” to that location but live elsewhere. The affected employees aren’t represented by a union. The company didn’t share any other details about the types of positions that are being eliminated.

The first round of layoffs is set to begin on Feb. 5, according to the letter.

The company employs more than 160,000 people around the world, which means the wider 5% reduction would amount to about 8,000 jobs cut in total.

In a memo obtained by Reuters this week, Cargill CEO Brian Sikes said that the job cuts are aimed at “streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work.”

Citing unnamed sources, Bloomberg reported that Cargill’s executive management team won’t be affected by the cuts, though a “number of next level senior leaders” will be.

The news comes as Cargill grapples with falling revenue. In August, the Star Tribune reported that the privately held company’s revenue fell 10% to $160 billion in its 2024 fiscal year, which ended in May. The newspaper said that marked the first annual revenue drop for Cargill since 2019.

“Make no mistake: the challenges facing the food system are many and they’re complex,” Sikes said in the company’s 2024 annual report issued this summer. “Markets and supply chains have been disrupted by conflict, changing demographics, and volatile economic and environmental conditions.”

Sikes succeeded longtime CEO David MacLennan at the beginning of 2023.