U.S. agri-food giant Cargill has announced plans to cut about 8,000 jobs and lay off about 8,000 people.

The job cuts will affect all areas of the company. 475 people will lose their jobs at the company's Minnesota headquarters alone.

„The company („Cargill“) is facing a cyclical downturn. This is definitely related to the beef market," says Chris Johnson, director of the agribusiness sector at „S&P Global Rating Agency“.

According to news agency „Reuters“, „Cargill“ the situation has been made much worse by the recent drought, which has led to a significant reduction in cattle numbers. They need much less feed. This has not been the case for decades.

The situation has also worsened for oilseeds. There is less need for seeds because there is uncertainty in the demand for biofuels too. Large stocks of soya and maize have also pushed down prices of these raw materials to levels not seen for four years.

„Cargill“ operates in nearly 70 countries worldwide. It employs around 160,000 people worldwide.